y0  ^^4jun4.^ 


TREASUru  ROOM 


COL.  GEORGE  WASHINGTON  FLOWERS 
MEMORIAL  COLLECTION 


DUKE  UNIVERSITY  LIBRARY 
DURHAM,  N.  C. 


PRESENTED  BY 

W.  W.  FLOWERS 


Cr.   //ZS 


Digitized  by  the  Internet  Archive 
in  2010  with  funding  from 
DuWe  University  Libraries 


http://www.archive.org/details/documentsaccompaOOconf 


l\^& 


IDOOXJIvlEKrTS 


ACCOMPANVING 


REPORT  OF  SECRETAR!  OF  THE  WIMi. 


RErORT  OF* COMMISSIONER  OF  TAXES. 


'v*- 


Office  of  Commissioner  of  Taxes, 

Richmond,  Xovember,  —  1863. 

Hoy.  C.  G.  Memmi.vser,  Secretary  of  the  Treasury  : 

Sir:  ave  the  honor  to  submit  the  following  views  and  sug- 
gestions *  'U  to  the  tax  laws.  The  existing  act.  apjiroved  '24t,h 
April,  Iti...  .  ulieved  to  be  correct  in  its  j^enoral  loaturca,  and 
calcutated  to  produce  desirable  results  in  respect  to  a  reduction  of  tho 
volume  of  currency,  and  in  the  supply  of  revenue,  to  meet,  to  somo 
extent,  the  current  expenses  of  the  Government. 

The  principle  of  taxation  embodied  by  the  act,  is  beiiovcd  to  \)q 
wise,  just,  and,  in  the  main,  equal,  and  the  rates  are  so  moderate  for 
the  times,  that  the  great  body  of  the  taxpayers  not  only  submit  to  the 
burthen  cheerfully,  but  manifest  a  willingness  to  have  them  increased. 
It  is  true  that  some  inconsiderable  opposition  has  been  manifested  in 
a  very  few  localities,  but  this  has  occurred  only  among  a  CM't-iin  cla>9, 
who  at  heart  are  disloyal  to  the  Government,  among  wh'>m  skulkers, 
and  deserters  from  the  army  have  sought  a  refuge,  and  aided  and 
abetted  this  opposition.  In  no  loyal  community,  that  I  am  aware  of, 
has  there  been  any  resistance,  by  word  or  act,  to  the  peaceful  inforce- 
ment  of  the  law.  The  people  have  yieldeil  a  ready  acquiescence  every 
where,  with  the  exceptions  mentioned,  notwithsianding  ih  •  evil  pre- 
diction of  ?roakors,  and  demagogues,  that  the  people  would  resist  the 
collection  of  the  ti^xes  with  force  and  arms  and  create  an  interu;;l  rcvolu- 
^ther  than  submit  to  thera.  The  present  law  was  a  bold  ^naugura- 
'E^tcin,  which,  if  carried  out  and  perfected, will  prove  the  salva- 
jountry  and  remain  a  monument  of  the  wisdom  and  itUriotisra 
[ress  who  passed  it.  The  country  already  begins  to  feel 
(»<T<'-ru    \vbif.>»  will  o.lowlv  and  irradaally  continue  to  de- 


2 

Vv?L>p  themselves,  until  th  it  relief,  so  anxiously  desireji  and  expected, 
■Will  be  fult  throughout  the  "whole  Confederacy.  The  operations  under 
tbrt  act  are  so  limited  at  present,  owing  to  many  causes,  that  it  would 
b-^  vain  to  attempt  anything  like  a  reliable  statement  of  the  amount 
of  the  annual  money  tax,  but  judging  from  the  collections  already 
made  of  taxes  from  business  and  occupatio^ns,  it  may  be  safely  affirmed 
thitt  the  money  tax  alone  this  year,  will  amount  to  at  least  one  hundred 
mdlions  of  dollars.  If  ihe  law  could  be  carried  out  and  full  returns 
and  coHections  made  in  the  territory  of  the  Confederate  States  under 
OUT  coiitrol  at  the  beginning  of  the  year,  it  is  believed  the  amount 
woali?  reach  one  hundred  and  fifcy  m.llions,  but  even  this  sum,  with- 
om.  the  CO- operation  of  a  succesful  system  of  funding,  will  not  pro- 
duce such  rv;duction  in  the  volume  of  currency  afloat,  as  will  reduce 
ths  price  of  the  necessaries  of  life  to  that  standard  so  essential  to  the 
g:vf>.-itj  of  the  Government  and  the  happiness  of  the  people.  In  laying 
taxes,  therefore,  tv\'o  prominent  objects  should  be^pught;  first  to  raise 
ft  certain  amont  of  revenue,  and  secondly,  to  so  adjust  the  taxes  as  to- 
la .ike  it  the  interest  of  cap'italists  to  invest  their  surplus  moneys  in 
Confederate  bonds  or  stocks,  and  to  thj,t  .end,  it  is  believed  that  the 
pxe^jeut  rates  of  taxation,  in  certain  cases  shoiald  be  greatly  increased. 
i>u'.:h  a  rate  should  be  imposed  on  Confederate  notes   and  incomeis  as 

-would  make  it  more  profitable  for  capitalists  to  invest  their  money  in 
OocfoiJeiate  securities,  than  to  employ  it  in  speculation  or  business. 
With  thip  view,  a  tax  of  at  least  twenty-five  per  cent,  should  be  im- 
posed on  all  Confederate  notes  on  hand  or  en  deposit  on  the  Ist  day 
ot  tTuly.  Those  who  may  have  cash  on  hand  or  on  deposit  can  v<^el[ 
alford  to  pay  cue  fourth  of  it  as  a  tax  to  the  Government,  when  the 
rem:ilning  three-fourths  would  be  worth  as  much  as  the  whole,  with- 
out the  consequent  reduction  in  the  volume  of  currency,,  and  v/ho 

*  would  not  be  willing  to  pay  half  the  money  he  possessed  to  see  the 
remaining  half  made  as  valuable  as  the  whole.  Such  I  believe  is  the 
spirit  and  desjre  of  the  people.  Confederate  bonds  and  stocks  might 
b«  oxempted  from  taxation,  or  the  present  rate  might  be  retained  as  it 
13,  In  either  event,  the  incentive  to  funding  would  be  very  powerful. 
Imtned lately  preceeding  the  time  ef  assessment,  millions  would  flow 
into  the  treasury  in  exchange  for  bonds.  An  increase  of  the  tax  on- 
incomes  will  have  a  like  effect  from  the  moment  the  increased  taxation 
w  known  to  the  public.  If  necessary,  a  tax  of  twenty-five  per  cent, 
should  be  laid  on  incomes  over  $5,U()0,  and  fifty  per  cent,  on  all  over 
^10>O0U,  and  fifty  per  cent,  on  the  profits  of  all  joint  stock  companies 
and  corporations,  over  and  above  a  dividend  of  tv/enty-five  per  cent, 
paid  to  their  stockholders.  This  may  be  considered  extravagant,  and 
capitalists  may  think  it  oppressive,  but  it  is  neither.  Every  man: 
should  be  satisfied  with  a  support  for  himself  and  family,  and  ail  he 
makes  above  that  should  be  divided  with  his  country.  No  man  should 
decire  to  amass  a  fortune,  or  to  increase  his  fortune,  if  he  already  has 
OKo,  frora  the  hard  necessities  of  a  bleeding  country.  While.  tfaa»e' 
fourths,  perhap.s,  of  the  men  of  the  Confederacy,  have  dedicat©4>t|l'^iC' 
liYQH  cvv  fortunes,  and  in  many  instances,  both,  to  their  .#|Hiib'^^ 
c*usr>,  the  remaining,  fraction  have  no  moral  right  to  ama^ssT 


-^;&8 


■?.t  their  expense.  An  adequate  tax  on  incomes  -will  prevent  them, 
and  at  the  same  time,  force  them  to  do  their  full  part  in  sustaining 
the  Government  in  its  struggle  for  political  as  well  as  financi'il  inde- 
pendence. I  would  not  recommend  an  increase  on  business  occupa- 
tions and  sales,  for  such  increase  would  ultimately  fall  on  the 
consumers,  those  lest  able  to  bear  it;  a  heavier  tax  on  sales  will  only 
increase  the  price  of  the  articles  sold,  and  the  purchasers  will  have  it 
to  pay.  But  a  tax  on  incomes  is  different,  and  the  person  taxed  must 
pay  it,  there  is  no  chance  there  to  shift  the  burthen. 

Under  their  practical  operation,  certain  defects  in  the  tax  and  as- 
sessment acts  have  been  developed  ;  but  this  was  to  be  expe«ted.  Jt 
would  be  unreasonable  to  look  for  a  perfect  system  of  taxation  in  a 
new  law.  Such  a  system  has  never  yet  been  devised  by  the  wisdom 
of  man  ;  one  perfect  in  all  its  parts,  and  bearing  equally  on  all  persons 
in  the  community,  in  the  burthens  which  it  imposes,  is  beyond  the 
power  of  legislation.  Though  the  acts  may  be  imperfect  anJ  contain 
obscurities  and  inconsistencies  which  are  apparently  irreconcilable, 
it  is  the  part  of  wisdom  to  cure  the  defects  and  remove  tie  obscurities 
and  inconsistencies  as  far  as  practicable,  without  affecting  the  system 
itself  A  system  of  assessment  and  collection  having  been  established 
and  carried  into  practical  operation,  in  conformity  with  the  present 
law,  it  would  be  wi^-e  to  adopt  only  such  changes  and  amendments  as. 
may  seem  to  be  absohitely  necessary  under  the  circumstances.  I  re- 
spectfully propose,  therefore,  tD  review  the  tax  act,  beginni)ig  witti 
the  first  section,  and  to  suggest  such  changes  and  amendments  as  seem, 
to  me  to  bo  necessary,  and,  after  disposing  of  it,  to  pursue  the  same, 
course  with  reference  to  the  machinery  or  assessment  act. 

By  section  one,  tax  act,  a  tax  of  eight  per  cent,  is  imposed  on  cor- 
t^ain  artirles  therein  mentioned.  And  on  allvmoneys,  bank  notes  or 
other  currency  on  hand  or  on  deposit  on  the  1st  day  of  July,  and  on 
the  value  of  all  credits  on  which  the  interest  has  not  been  paid,  and 
not  employed  in  a  business,  the  income  deriveil  from  which  is  taxed 
under  the  act,  a  tax  of  one  per  cent,  is  laid.  By  section  eighteen,  of 
the  same  act,  it  is  declared  to  be  in  force  for  two  years  after  the  expi- 
ration of  the  present  year,  and  it  is  provided  that  the  tax  on  nav.il 
stores,  tl  )ur,  wool,  cotton,  tobacco  and  other  agricultural  products  of 
the  growth  or  production  of  any  year  preceding  the  year  1863,  im- 
posed in  the  first  section  of  the  act,  shall  be  levied  and  colicctod.onlj. 
for  the  present  year.  This  certainly  leaves  the  tax  on  salt,  wines,, 
spirituous  liquors,  moneys  and  credits  still  in  force.  But  does  it  not 
also  intend  to  leave  the  tax  in  force  upon  naval  stares  and  agricultu- 
ral products  other  than  those  taxed  in  kind  ?  The  time  for  aseessinft. 
their  value  is  loft  obscure,  and  the  obscurity  in  this  respect  as  well  aa- 
witli  reference  to  naval  stores  an<l  agricultural  products  not  taxed  in 
kind,  should  be  removed  by  Congress. 

Again,  it  has  been  strenuously  contended  that  open  accounts,  evi- 
dences of  debt  not  due,  and  certificates  of  bank  and  other  stock,  are 
not  credHa  within  the  moaning  of  the  act. 

The  J)<'partment  has  held  the  affirmative  in  refer  ncc  to  each, 
but  I  think  it  would  be  better  for  Congress  to  remove  the  doubt.     It 

P62885 


has  been  also  decided  that  the  words,  "  and  not  employed  in  a  businesSy 
the  income  from  which  is  taxed  under  the  provisions  of  thi?  act," 
used  in  the  s^ime  section,  do  not  refer  to  **  moneys,  bank  notes  or  other 
currency."  but  refer  exclusively  to  credits.  This  ruling  has  caused 
considerable  complaint,  especially  with  the  banks,  and  the  question  I 
think  should  be  also  settled  by  Congress,  and  in  taxing  moneys  gold 
bullion  should  be  taxed  at  it?  value  in  Confederate  notes,  because  it  is 
used  extensively  in  some  sections  as  currency,  or  a  medium  of  trade. 

By  paragraph  three,  section  five,  it  is  declared  that  every  person, 
other  than  the  distiller  or  brewer,  who  shall  sell  or  offer  for  sale  any 
distilled  spirits,  fermented  liquors  or  wines,  in  quantities  of  more 
than  three  gallons  at  one  time  to  the  same  purchaser,  shall  be  regarded 
as  a  wholesale  dealer  in  liquors.  And  also  that  all  persons  who  shall 
sell  or  offer  to  sell  any  such  liquors  or  wines  in  quantities  less  than 
three  gallons,  &c.,  shall  be  regarded  as  retail  dealers.  Under  this 
paragraph  all  wines  are  included  and  none  excepted,  and  all  persons 
whx)  sell  or  offer  to  sell  any  wines,  are  liable  to  the  tax.  The  ladies  of 
the  country  manufacture,  mostly  for  medicinal  purposes,  domestic 
^ines  from  the  grape,  black  berries,  elder  berries,  and  perhaps  other 
aubstances,  and,  under  the  present  law,  they  are  precluded  from  selling 
without  becoming  dealers  in  liquors,  and  paying  the  tax  imposed  on 
'Stich.  This,  it  is  supposed,  was  hardly  the  intention  of  Congress.  No 
benefit  will  arise  from  it  in  the  way  of  revenue,  for  they  very  seldom 
manufacture  it  in  sufficient  quantities  to  justify  the  payment  of  a  spe- 
cific tax,  and  the  consequence  is  that  the  law  operates  as  a  general 
prohibition  of  the  sale  of  such  wines.  The  price  of  sugar  used  in  its 
manufacture  is  so  great  that  it  is  an  object  of  importance  to  sell  a  por- 
tion of  the  wine  to  lighten  the  expense  of  production,  and  it  is  of 
great  benefit  to  the  sick  and  wounded  to  be  able  to  purchase  \i.  The 
tax  will  not  only  diminish  its  production,  but  deprive  the  invalid  of 
ita  use,  because  the  producers  cannot  afford  to  sell  it  if  they  are  re- 
quired to  pay  the  specific  tax.  I  would  therefore  recommend  that  a 
specific  quantity  of  domestic  wine  made  from  the  grape,  and  all  wines 
made  from  black  berries,  elder  berries  and  other  substances,  be  ex- 
empted from  taxation. 

A  practical  change  in  the  specific  tax  on  retail  dealers  in  goods, 
wares,  &c.,  is  earnestly  recommended.  In  many  cases  it  is  extremely 
'difficult  to  determine  whether  persons  who  have  made  sales  of  articles 
cf> trade  come  under  the  denomination  of  retail  dealers  so  as  to  sub- 
ject them  to  the  tax.  They  do  not  follow  it  as  a  business,  yet  thej 
adrefSQ' nea,r  the  line  of  demarcation  that  it  is  impossible  to  tell  on 
which  side  they  belong.  To  remove  this  difficulty,  and  also  to  render 
the  operation  of  the  tax  more  equal,  it  is  proposed  that  dealers,  and 
all  whose  gross  sales  are  taxed,  shall  be  required  to  register  Avith(5ut 
paying  any  specific  tax,  unless  their  sales  amount  to  one  hundred  dol- 
lars or  more,  but  they  shall  pay  the  two  and  a  half  per  cent,  on  sales, 
and  when  their  sales  amount  to  one  hundred  dollars  they  shall  be 
required  to  pay  a  specific  tax.  The  specific  tax  on  all  retail  dealers 
is  $50.  There  is  a  class  of  very  small  dealers,  and  among  them  sol- 
diers' widows  and  wives  and  disabled  soldiers,  upon  whom  this  tax 


bears  very  heavily.     As  the  law  is  they  pay  the  same  specific  tax  that 
the  largest  retail  merchant  pays.     I  would  propose  a  scale  of  specific 
taxes,  thus:    Let  those  whose  quarterly  sales  amount  to  one  hundred 
dollirs   or  less,   pay   ten   dollars,    and   those  whose  quarterly   sales 
amount  to  more  than  one  hundreJ  dollars,  and  not  exceedim?  five 
hundred  doHars,   pay  twenty-five  dollars,  and  where  the   quarterly 
sales  are  more  than  five  hundred  dollars,  let  the  specific  tax  be  fifty 
dollars,  a<^  it  now  stands.     In  defining  who  shall  be  regarded  as  whole- 
sale dealers  under  parngraph  6,  section  5,  the  language  is  such  as  to 
render  it  extremely  difficult  to  draw  the  line  of  distinction  between 
them  and  retail  dealers  ;    and   in   deciding    cases   accordino-   to   the 
letter  of  the  law,  the  tax  bears  heavily  on  certain  classes.     For  in- 
stance, a  wholesale  dealer  is  defined  to  be,  every  person  whose  busi- 
ness  or  occupation  it  is  to  sell  or   offer  to  sell  any  groceries,  goods, 
wares,  or  merchandise,  of  foreign  or  domestic  production,  by  one  or 
more  original  package  or  piece.     Under  this  definition,  according  to 
the  strict  letter,  a  tanner  selling  one  side   of  leather  is  a  wholesale 
dealer,  or  a  miller  selling  one  barrel  of  flour,  even  to  a  consumer,  is 
also  a  wholesale  dealer.     So  a  manufacturer  of  shoes,  under  contract 
for  the  Government,  at  reduced  prices,  is  a  wholesale  dealer,  because 
he  has  but  one  customer  to  whom  he  sells  all  the  goods  manufactured 
which    fact  precludes   the   idea  of  taxing  him  as   a   retailer,   for  he 
belongs  to  the  same  class  of  dealers  who  manufacture  cloths,  arras, 
ordnance,  &c.,  on   a  very  large  scale  for  the   same  purchaser.     The 
small  and  large  contractors  are  on  the  same  footing  and  pay  ihe  same 
specific  tax.     A  decision  which  would  make  the  shoe  manufacturer  a 
retail  dealer,  would  }.lace  the  largest  cotton   or  woolen  mill,  working 
for  the  Government  and  selling  exclusively  to  it,  on  the  same  footino-. 
I  would  recommend  such  amendment  as  will  more  distinctly  define  a 
wholesale  dealer,  by  adding  words  which  will  exclude   small  contrac- 
tors working  for  and  selling  to  the  Government  exclusively,  and  such 
dealers  as  sell  exclusively  to   consumers,  and  not  to  speculators,  en- 
grossers, or  to  other  dealers  to  be  sold  again. 

Persons  usually  denominated  negro  traders,  by  a  Strange  omission, 
are  not  taxed  under  section  five,  except  as  commercial  brokers,  when 
they  sell  as  the  agent  of  others.  Where  they  buy  and  sell  and  deal 
in  negroes  on  their  own  account,  there  is  no  provision  embracing 
them.  They  should  be  taxed  as  wholesale  dealers,  and  may  be 
included  under  paragraph  six,  section  five,  by  adding  "slaves"  before 
the  word  "groceries,"  so  that  it  may  read,  "whose  business  or  occu- 
pation it  is  to  sell  slaves,  or  any  groceries,  goods,  wares,"  &c. 

Distillers. 

Under  paragraph  eight,  section  five,  geteral  distillers  are  required 
10  pay  a  specific  tax  of  two  hundred  dollars  and  twenty  per  cent,  on 
their  sales.  But  if  they  distil  the  grain  or  material  of  other  persons, 
the  liquors,  when  made,  pass  out  of  their  hands  into  the  hands  of  the 
owner  without  being  sold,  and  therefore  escape  the  tax  of  twenty  per 
cent.     The  distiller  cannot  be  held  resposible  for  the  tax  in  such  case, 

P62885 


because  he  has  not  sold  the*liquors.  The  owner  cannot  be  charged 
with  the  twenty  per  cent,  when  he  sells,  because  that  rate  is  only  im- 
posed on  the  distillers  sales.  This  part  of  the  act  should  bo  amended  so 
as  to  recjuire  the  general  distiller  to  pay  twenty  per  cent,  on  the  value 
of  all  liquors  distilled  for  and  delivered  to  others,  as  well  as  the 
twenty  per  cent,  on  his  own  sales.  This  is  necessary  to  secure  the 
distiller's  tax  as  well  as  to  equalize  the  burthens  of  taxation.  For  as 
the  law  exists,  those  Avho  procure  the  distillation  of  their  grain,  fruit, 
or  other  material,  by  the  general  distiller,  escape  the  distiller's  tax. 
Whereas,  those  who  have  fruit  distilled  by  the  ninety  d-.rys  fruit  dis- 
tiller are  taxed  through  him  fifty  cents  or  two  dollars  per  gallon  on 
their  liquors,  because  he  is  required  to  pay  such  tax  on  all  the  liquors 
distilled  by  him. 

Provision  should  be  made  to  meet  cases  of  evasion  of  the  law  by 
distillers.  I  am  informed  of  instances  having  occurred  in  which  stilLs 
have  been  put  into  the  possession  of  insolvent  and  unscrupulous  per- 
sons, so  that  the  distillation  might  be  made  in  their  names.  They 
register  as  distillers  of  fruit  for  ninety  days,  and  distill  during  the 
time  alloAved  them,  but  when  called  on  by  the  collector  for  the  tax,  they 
profess  to  have  no  money  and  decline  to  pay,  and  when  the  collector 
distrains  the  still,  and  oifeis  to  sell  it  to  pay  the  tax,  a  claim  is  inter- 
posed by  the  owner  under  an  affidavit  that  it  is  his  property.  No  pro- 
vision has  been  made  in  either  act  for  the  disposal  of  claims  thus  inter- 
posed for  property  distrained,  and  collectors  have  been  in  the  habit 
of  giving  up  the  property  without  an  investigation.  In  the  case  of 
distilleries  it  ought  to  be  provided  that  the  tax  on  distillers  shall  be  a 
lien  on  the  still  or  stills  and  ether  fixtures  and  appurtenances  for 
carrying  on  the  business,  and  shall  have  priority  over  all  other  liens 
or  claims.  Some  tribunal  ought  to  be  provided  for  the  trial  of  claims 
for  property  distrained  for  the  payment  of  taxes.  Collectors  ought 
not  to  surrender  property  upon  the  mere  affidavit  of  the  claimant 
without  an  investigation  of  the  title. 

Section  six,  tax  act,  requires  dealers,  and  others  registered  under 
the  provisions  of  section  five,  to  return  to  the  assessor  of  their  district, 
at  the  end  of  every  three  months,  from  and  after  the  1st  of  July,  18G3, 
or  within  ten  days  thereafter,  a  list  of  the  gross  amount  of  their  sales 
made  during  the  preceding  quarter,  and  at  the  same  time  to  pay  to  the 
collector  the  amount  of  tax  due  thereon,  and  in  default,  they  are  to 
be  double  taxed.  This  requirement,  in  a  majority  of  the  districts,  it 
is  utterly  impossible  to  comply  with.  The  collector  and  the  assessor 
are  necessarily  seperated.  While  the  former  is  at  his  office,  the  latter  is 
travelling  through  the  district,  making  assessments.  This  section 
should  be  so  amended  as  to  require  the  lists  to  be  made  within  twenty 
days,  instead  of  ten,  from  the  end  of  the  preceding  quarter,  and  the 
-tax  to  be  paid  within  such  period  as  the  collector  may  designate  by 
publication,  which  time  shall  not  be  less  than  ten,  nor  more  than 
thirty  days,  from  the  date  of  the  notice  or  publication. 

Sections  nine  and  eleven  require  the  selection  of  referees  from  the 
vicinage,  in  certain  cases,  and  as  the  act  makes  no  provision  for  com- 
pensating them  foi*  their  services,  and  as  the  operations  of  assessors 


have  been  embarrassed  and  retarded  by  reasons  of  tlie  refa^al  of 
neighbors  to  act  as  referees,  I  woubl  recommend  that  tliey  be  -allow-d 
each  i5  per  day,  when  so  employed,  shouUl  they  demand  compeaMri- 
tioa.  Collectors  and  assessors  should  be  authorized  to  issue  corrpul- 
fiory  process,  when  it  may  be  necessary,  to  compel  the  attemJanof:  if 
■witnesses  whose  evidence  may  be  reciuired  in  behalfof  tho  Governrafent. 


Tax 


IN 


The  presumption  is  that  Congress,  in  allowing  a  reservatioi  ».  f  a 
certain  quantity  of  certain  articles  from  the  tax  in  kind,  intendvd 
thereby  to  benefit  the  poor  and  the-  needy,  but  the  liw,  as  it  fitar. 'p, 
secures  the  samo  reservations  to  the  wealthiest  farmer  or  planter  in 
the  community.  The  act  should  be  amended  so  as  to  exempt  every 
farmer  or  planter  from  the  tax  in  kind  on  these  articles,  who  does  not 
produce  more  than  the  reservations  allowed  in  each  case,  that  i»,  if  a 
farmer  only  produces  one  hundred  bushels  of  corn,  it  shall  be  exetnjt 
from  the  tithe,  and  so  On  through  the  articles  intended  to  bo  exempted. 
To  the  wealthy  and  prosperous,  these  reservations  arc  of  little  conse- 
quence, but  to  the  poor,  they  are  of  much  importance.  What  f]..<.8 
the  man  who  makes  five  or  ten  thousand  bushilfl  of  corn  care  about 
the  tithe  of  ten  bushels  saved  l)y  the  privilege  of  reserving  one  hun- 
dred bushels  from  the  tax?  Yet  when  the  aggregate  thus  reserved  .8 
considered,  its  importance  to  the  Government  will  at  once  be  per- 
ceived. The  ten  bushels  of  corn  is  a  mere  triilo  to  a  prosperous 
farmer,  but  ten  bushels  from  ever  prosperous  firmer  would  yield  the 
Government  a  very  large  amount  of  corn  of  which  it  is  now  deprived  ; 
and  so  it  is  with  other  products. 

The  tax  in  kind  being  a  new  experiment  in  this  country  ."it  has  net, 
80  far  as  we  are  concerned,  the  test  of  experience  to  recommend  ;t. 
Some  dissatisfaction  with  this  branch  of  the  law  has  been  exhibited  ia 
certain  localities,  while  the  farmers  are  perfectly  willing  to  piy  the 
valuation  in  money,  and  some  doubts  of  its  benofi'jial  operation  are 
entertained.  This  species  of  tax  is  much  more  difhcult  to  be  hand'fd. 
and  carried  to  points  where  it  may  be  needed,  and  its  collection  and 
distribution  ia  more  expensive,  and  it  is.more  liable  to  v/aste  and  de- 
struction, than  a  money  tax.  But  these  reasons  do  not  necpss.irily 
require  its  repeal  until  it  has  had  a  fair  test.  Its  effect  will  bo  to  re*- 
lieve  the  Governmeat  frcm  many  heavy  purchases,  which  it  would 
otherwise  be  necessary  to  make,  and  thus  reduce  the  amount  of  T.-ea- 
eury  notes  to  be  issued.  It  was,  doubtless,  intended  as  a  substitute  for 
a  direct  tax  on  land  and  slaves,  and  to  avoid  the  consiitutional  objec- 
tion to  such  a  tax  until  a  census  is  taken.  If  it  !-ho'ild  be  thoight 
best  to  dispense  with  it.,  after  this  year,  a  raonej-  tax  can  bo  collected 
in  lieu  of  it,  without  being  obnoxious  to  the  con!?titutional  objection. 
If  the  tax  in  kind  should  be  repealed,  a  tax  of  ton,  fifteen  or  twenty 
per  cent,  could  be  imposed  on  the  actual  or  estimated  annual  reijtal 
of  all  lands,  and  on  the  actual  or  estimated  annual  hire  (f  all 
slaves,  88  a  similar  tax  is  now  imposed  on  the  rent  of  houses  and 
lots  ia  cities,  towns  and  villages,  and  the  hire  of  sorv mts  not  eoa- 


8 

pljyei  on  the  firm,  or  some  other  business,  the  income  from  which  is 
taxed  by  the  existing  tax  act.  In  this  way  an  amount  of  money  may 
be  brought  into  the  Treasury  more  than  equal  to  the  money  value  of 
tie  produce  tax.  ThaT;*ibhe  agricultural  products  collected  will  be 
liable  to  waste  and  destruction,  cannot  admit  of  a  doubt.  That  some  of 
taeni  will  be  wasted,  may  be  reasonably  expected,  and  their  waste, 
With  the  greatest  possible  care,  will  be  much  greater  than  that  of  a 
money  tax.  The  object  and  eifect  of  this  act  will  be  to  relieve  the 
Government,  pro  tanto,  from  making  purchases  of  supplies  for  the 
army,  but  the  extent  of  this  relief  will  be  the  value  of  the  supplies  ac- 
tvally  used  by  the  army.  The  place  of  that  which  will  be  wasted  or 
daatroyed  must  necessarily  be  supplied  by  purchase  ;  and  that  wasted 
and  destroyed  will  be  a  loss  to  the  country,  without  a  corresponding 
benefit  to  any  one.  The  expense,  too,  of  collecting  a  produce  tax 
will  be  greater  than  that  of  collecting  a  tax  in  money.  The  former 
requires  more  agents  to  receive  and  distribute  it  than  the  latter,  and, 
to  that  extent,  is  more  expensive.  In  addition  to  this,  the  cost  of 
storing  and  keeping,  and  of  transportation,  is  far  heavier  on  produce 
than  on  money.  If  all  this  be  true,  then  it  would  seem  to  follow  that, 
ia  view  of  the  leading  object,  which  is  to  reduce  the  volume  of  cur- 
reacj,  a  money  tax  on  the  rental  of  land  and  the  hire  of  slaves,  ac- 
tual or  estimated,  should  be  adopted  in  lieu  of  the  tax  in  kind. 

Should  it,  however,  be  deemed  best  to  retain  the  tax  in  kind  for 
further  experiment,  then  I  would  earnestly  recommend  that  the  two 
be  wholly  disconnected,  and  placed  under  separate  jurisdictions.  The 
two  taxes  are  now  collected  by  different  sets  of  agents.  One  set  for 
the  collection  and  distribution  of  the  produce  tax,  is  under  the  con- 
trol v/f  the  W  ar  Department,  and  the  other  for  the  collection  and 
transmissi^)n  of  the  money,  is  under  the  control  of  the  Treasury  De- 
partment. One  cause  of  complaint  against  the  present  tax  system  ia 
ita  complexity.  Let  the  two  species  of  taxes  be  separated  and  placed 
ia  the  hands  of  agents  entirely  disconnected,  and  much  of  the  com- 
plaxity  and  embarrassment  complained  of  will  be  removed.  This  may 
b'i  done  without  an  increase  of  expense.  It  would  require  another  set 
of  Assessors  for  the  tax  in  kind,  but  their  appointment  would  not  be 
attended  with  any  additional  expense  to  the  Government.  Even  now  in 
mijority  of  the  tax  districts,  so  great  is  the  labor  of  assessing  both 
taxes  that  additional  assessors  are  appointed.  Let  two  sets  be  ap- 
poiated,  one  for  the  produce,  and  one  for  the  money  tax,  then  the  ex- 
pense of  assessing  the  latter  would  be  diminished  to  the  same  extent, 
that  the  expense  of  the  other  would  be  increased.  The  time  now  re- 
quired for  one  assessor  to  a-ssess  both  taxes  would  be  divided  between  the 
two,  if  two  should  be  appointed,  so  as  to  have  one  for  each  tax.  Let  the 
two  taxes  be  entirely  disconnected,  place  the  produce  tax  under  the  con- 
trol of  the  Secretary  of  War  and  his  officers  and  agents,  and  let  the  as- 
sessments and  returns  thereof  be  made  by  assessors  of  his  appointment 
through  the  controlling  quartermaster  of  each  State,  to  the  bureau  now 
appointed  to  superintend  them,  and  the  complexity  of  the  system  now 
80  embarrassing  to  collectors  and  assessors  will  be  removed.  Not 
that  the  system  itself  will  be  rendered  less  complex,  by  the  disconneo- 


tion,  but  its  execution  will  be  more  easy  and  simple  without  the  incon- 
venienct!  resulting  from  two  sets  of  officers  acting  under  separate  ju- 
risdictions, and  without  additional  expense. 

It  has  been  decided  by  the  department  that  the  syrup  made  from 
sorghum  is  not  subject  to  the  tax  in  kind.  That  the  qualifying  words, 
as  used  in  the  act,  "  made  of  cane,"  restrict  the  tax  to  molasses 
or  syrup  made  of  the  genuine  West  India  sugar  cane.  From 
information  derived  from  the  various  sections  of  the  Confederate 
St.iteg,  I  am  satisfied  that  the  production  of  sorghum  syrup  will  be 
great  this  year,  and  the  indications  are  that  it  will  be  increased  in 
quantity  the  coming  year.  It  is  esteemed  as  valuable  for  food  as 
the  New  Orleans  molasses,  and  now  that  the  supply  so  far  exceeds 
public  expectation,  and  there  no  longer  seems  to  be  any  good  reason 
for  exempting  this  species  of  syrup,  in  order  to  encourage  its  produc- 
tion, I  would  recommend  that  it  be  subjected  to  the  tax  in  kind. 

Numerous  complaints  have  been  made  on  the  part  of  farmers,  that 
no  deduction  is  allowed  them  in  the  act  for  the  corn  used  in  fittening 
their  pork.  They  contend  that  they  should  not  be  subject  to  the  tithe 
on  this  corn,  inasmuch  as  they  pay  it  by  a  tithe  on  the  pork,  and  if 
they  are  required  to  pay  a  tithe  on  the  corn  upon  which  the  pork  is 
fattened,  as  well  as  a  tithe  of  the  pork,  that  they  virtually  pay  a 
'double  tax  on  the  corn. 

Under  section  twelve,  tax  act,  every  farmer,  planter  or  grazier  is 
required,  at  a  certain  time,  to  exhibit  to  the  tax  assessor  an  account  of 
all  the  hogs  slaughtered  by  him,  and  to  the  pay  the  tithe  in  bacon  at 
the  rate  of  60  lbs.  of  bacon  to  every  one  hundred  weight  of  pork 
slaughtered.  This  tax  may  be  evaded  by  the  little  management  which 
many  unscrupulous  persons  may  be  tempted  to  do,  in  this  way  :  The 
farmer  (ian  sell  his  hogs  on  foot  to  a  purchaser  who  is  neither  a  farmer, 
planter  nor  grazier,  and  thus  the  seller  as  well  as  the  purchaser  will 
escape  the  tithe  in  bacon.  The  tax  under  the  section  will  operate 
harshly  and  oppressively  on  the  poor  in  many  cases.  If  the  person 
be  a  planter,  fimner  or  grazier,  no  matter  upon  how  small  a  scale,  and 
should  slaughter  only  one  hog,  the  tithe,  as  the  law  now  stands,  must 
be  collected.  The  act  should  be  amended,  and  all  who  do  not  slaugh- 
ter" more  than  250  lbs.  of  net  pork,  should  be  exempted  from  the 
bacon  tithe.  In  this  connection  I  would  also  recommend  that  no  tithe 
be  collected  from  fodder  where  the  person  does  not  produce  more  than 
100  bushels  of  corn.  It  would  be  sound  policy  to  exempt  wool,  where 
the  amount  does  not  exceed  five  pounds,  and  the  cotton  raised  exclu- 
sively for  domestic  use  ;  where  the  amount,  when  ginned,  does  not  ex- 
ceed fifty  or  one  hundred  pounds.  And  in  assessing  money,  all  who  do 
not  hold  or  have  on  deposit,  1st  of  July,  more  than  $oO,  should  be  ex- 
empted. The  loss  tojthe  government  by  such  descriraination  in  favor  of 
the  poor  and  humble  in  circumstances,  would  be  insignificant,  and  more 
than  compensated  by  allowing  no  reservation  whatever  to  the  more 
wealthy.  Besides,  this  class  of  people  have  a  hard  struggle  to  live  at 
best,  and  the  assessment  of  their  little  money  and  produce  is  found 
to  be  irritating,  and  produces  discontent  and  murmurings  against  the 
government.     Numerous  appeals   have   been   addressed   to   the   tax 


10 

bureau,  in  behalf  of  this  class,  principally  by  the  local  tax  officers. 
They  think  it  very  hard  that  their  little  sums  of  money,  and  their 
scanty  crops,  often  produced  by  the  labor  of  women  and  children, 
"whose  husbands,  brothers  and  fathers  are  in  the  army,  should  l-e 
taxed,  v/heu  perhaps  the  same  persons  will  have  to  be  supported  as 
public  expense,  before  another  crop  is  made.  I  do  not  think  it  good 
policy  to  tax  such,  and  would  earnestly  recommend  such  amendment  of 
the  law  as  will  give  them  them  relief. 

Under  section  twelve,  an  estimate  is  required  to  be  made  on  the  1st 
day  of  November,  of  neat  cattle,  horses,  mules,  &c.,  and  at  the  same 
time,  the  gross  proceeds  of  the  sale  of  beeves  are  to  be  estimated,  and 
after  making  certain  deductions,  if  necessary,  to  be  taxed  as  income. 
and  both  'axes  are  to  be  due  1st  day  of  January.  These  repeated 
assessments  and  estimates,  at  different  times,  are  troublesome  and 
expensive,  and  without  profit  to  the  government,  I  would  suggest  that 
this  section  be  amended  so  as  to  require  such  assessments  and  esti- 
mates to  be  made  on  the  1st  day  of  January,  or  as  soon  thereafter  as 
practicable,  at  the  same  time  that  salaries  and  incomes  are  to  be  ascer- 
tained and  assessed.  The  periods  for  making  returns  to  assessors 
should  be  as  few  as  possible,  for  the  fewer  they  are,  the  less  irritating 
and  annoying  will  be  the  visits  of  assessors,  and  the  less  will  be  the 
expense  of  assessing.  In  making  the  estimates  of  income  in  Jan- 
uary, the  nssessor  could,  at  the  same  time,  assess  cattle,  horses,  kc, 
and  ascertain  the  income  derived  from  beeves  sold  during  the  whole 
preceding  year.  The  proceeds  of  beeves  sold,  after  the  items  are 
deducted,  are  to  be  taxed  as  income,  and,  therefore,  it  is  impracticable 
to  ascertain  the  rate  of  tax  on  this  one  item  by  itself,  because  the  rate 
depends  upon  the  whole  amount  of  the  tax-payer's  income  when  ascer- 
tained, and  the  rate,  therefore,  cannot  be  ascertained  until  the  income 
from  all  other  sources  be  estimated  in  January,  and  th.;  item  for 
beeves  sold  be  added  to  it.  So  the  making  an  estimate  of  this  item 
of  income  on  the  1st  day  of  November,  is  utterly  useless,  because  the 
tax  cannot  bo  collected  until  all  other  items  of  income  are  ascertained, 
and  it  is  added  to  them.  It  is.  therefore,  obvious  that  they  all  should  be 
estimated  and  assessed  at  the  same  time,  and  then  there  v.ouldbe  only 
two  periods  of  assessment  for  the  money  tax,  except  in  regard  to  busi- 
ness sales,  and  they  would  be  the  1st  of  July  and  the  Ist  of  January. 

The  estimates  of  incomes  and  pi'ofits  other  than  those  payable  ia 
kind,  and  the  statement  or  bills  for  the  avaount  of  the  specific  tax  on 
occupations,  employments,  business,  and  professions,  and  of  taxes  on 
gross  sales  are  required  by  section  fourteen  to  be  delivered  by  the 
assessor  to  the  collector  of  the  district,  who  is  required  to  receipt  for 
the  Si  me,  and  the  assessor  is  required  to  file  the  collectors  receipt; 
with  the  chief  collector  of  the  State,  and  the  collector  of  the  district, 
holding  such  estimates,  statements,  and  bills,  is  required  to  collect  the. 
same  from  the  tax-payer.  The  collector  is  also  required  to  pay  the 
money  thus  collected  to  the  chief  tax  colleator  of  the  State,  accom- 
panied  h J  the  estimates,  statements,  or  bills,  I  see  no  good  reason  why 
these  bills  or  estimates  should  be  sent  to  chief  collector,  any  more 
than  the  other  lists  of  return   of  property,  moneys,  «fec.     It  is  aa 


unnecessary  expense,  and  destroys  the  uniformity  of  the  general 
system.  These  bills,  &c.,  should  be  copied  into  general  lists  or  tax 
books,  alphabetically  arrar.ged,  and  one  of  these  should  be  sent  to  the 
chief  collector,  instead  of  the  bills  or  statements  themselves.  I  pro- 
pose this  change,  unless  the  system  hereinafter  proposed  of  dispensing 
Avith  these  single  lists  or  statements,  should  be  adopted. 

Assessment  Act. 

Section  one  establishes  the  tax  bureau,  and  provides  for  the  appoint- 
ment of  a  Commissioner  of  Taxes,  but  fails  to  authorize  the  appoint- 
ment of  a  chief  clerk.  The  necessity  for  such  an  officer  is  obvious. 
The  Commissioner  of  Taxes,  like  every  other  head  of  a  bureau,  should 
have  a  chief  clerk  to  aid  him  in  superintending  and  directing  the  busi- 
ness of  his  office,  and  to  act  in  his  stead  v.hen,  from  sickness  or  other 
cause,  it  may  become  necessary  for  him  to  be  absent  from  his  office. 
I  would,  therefore,  respectfully  ask  that  Congress  authorize  the  Sec- 
retary of  the  Treasury  to  appoint  a  chief  clerk  for  this  bureau,  -with 
the  same  salary  that  is  allowed  chief  clerks  of  other  bureaus. 

Section  tAvo  provides  that  the  State  collectors  shall  receive  as  com- 
pensation for  their  services,  one-tenth  of  one  percent,  on  the  amount 
collected,  but  then  no  salary  shall  be  less  than  $2,(100,  nor  moie  than 
$3,000.  As  the  public  interest  makes  it  necessary  for  State  collectors 
to  reside  and  keep  their  offices  in  large  tov?ns  and  cities,  where  the 
cost  of  living  is  very  great,  1  would  recommend  that  the  maximum  be 
increased  to  $4,000. 

And  I  would  further  recommend  that  the  compensation  of  district 
collectors  be  changed.  Let  them  receive  five  per  cent,  on  the  first 
$20,000,  two  per  cent,  on  the  next  f.30,000,  one  per  cent,  on  the  next 
$oO,U(.K),  collected  and  paid  over,  and  one-tenth  of  one  percent,  on  all 
moneys  collected  and  paid  over  above  the  sum  of  i$  100,000.  In  some 
of  the  collection  districts  composed  of  large  towns  and  cities,  it  has 
been  exceedingly  difficult  to  get  competent  collectors.  Embarrass- 
ments J\nd  delays  have  been  the  result,  and  consequent  loss  to  the 
government  occasioned  by  these  delays.  In  somecas.s,,  by  persuasion 
and  appeals  to  the  patriotism  of  gentlemen,  they  have  reluctantly 
accepted  the  appointments.  But  it  will  not  do  to  depend  on  patriot- 
ism. In  these  cases,  the  pay  must  be  in  less  disproportion  to  the  labors 
and  responsibilities  of  collecting  and  handling  such  largo  sums  of 
money,  or  I  fear  many  of  these  officers  will  resign,  and  it  Avill  be  im- 
possible to  fill  their  places  with  competent  men.  Resignations  are 
already  frequent;  many  allege  that  the  maximum  compensation  of 
$2,000  will  .scarcely  pay  their  deputies  and  travelling  expenses. 
These  resignations,  and  constant  complaints  and  appeals  to  this  office 
for  incidental  allowances,  which  I  have  no  authority  to  grant,  have 
been  a  source  of  great  perplexity,  I  would,  therefore,  urge  it  as  a 
measure  of  justice  as  well  as  economy,  that  the  alteration  suggested, 
or  some  other,  adequate  to  the  end  desired,  be  made. 

The  work  of  assessment,  after  great  delays  in  getting  suitable  per- 
sons to  accept,  has  been  greatly  retarded  and  embarrassed,  and  the 


12 

public  interest  has'  suffered  by  the  frequent  and  continued  resignations 
of  ^psessora,  and  the  inability  of  the  State  collectors  to  fill  their  places 
with-'competent  men  not  subject  to  military  duty.  These  difficulties 
■will  be  increased  if  their  compensation  is  not  raised  also.  Many  have 
agreed  to  hold  on  to  their  offices  Avith  the  hope  that  Congress  will  do 
so,  but  if  it  is  not  done,  they  will  resign.  In  many  districts  it  has 
been  very  difficult  to  obtain  the  consent  of  persons  properly  qualified 
for  these  offices  to  take  them,  on  account  of  the  inadequacy  of  the 
compensation  for  the  times.  Many  who  accepted  them  reluctantly, 
have  found  the  duties  to  be  much  more  onerous  than  they  expected, 
and  hence  they  have  become  restive  and  discontented,  and  it  is  feared 
will  resign.  To  execute  the  tax  act  properly,  requires  active,  intelli- 
gent men,  of  at  least  fair  business  qualifications.  The  number  from 
which  the  selection  is  to  be  made,  is  very  small.  The  young  men  of 
the  country  best  qualified  for  these  offices  are  in  the  army,  and  their 
services  cannot  be  had.  Men  of  age  and  experience  are  indisposed 
to  encumber  themselves  with  offices,  the  duties  of  which  are  so  complex 
and  heavy,  without  corresponding  remuneration.  An  increase  of  pay 
is  necessary  to  secure  the  best  talent  of  the  country  for  offices  which 
require  men  of  character  and  ability  for  a  proper  performance  of  the 
duties.  The  present  pay  is  inadequate  for  the  time,  trouble,  and  re- 
sponsibility involved.  Experience  has  amply  proven  the  correctness 
of  these  remarks,  and  unless  the  compensation  of  tax  officers  is 
increased,!  am  well  assured,  in  many  districts,  that  the  tax  machinery 
will  be  stopped  for  want  of  competent  men  to  fill  the  places.  I  respect- 
fully recommend,  therefore,  as  a  measure  of  public  economy  and  neces- 
sity, that  the  proviso  to  section  thirty-six  of  the  assessment  act,  fixing 
the  maximum  of  assessors'  salaries  at  $1,000,  be  repealed,  and  that 
the  Secretary  of  the  Treasury  be  authorized  to  increase  their  per  diem 
comp  nsation  in  cities  and  large  towns,  where  the  high  price  of  living, 
and  other  circumstances  may  require  it,  not  to  exceed  $10  per  day  for 
every  day  employed  in  making  lists  and  assessments.  And  in  rural 
districts  to  allow  them  something  for  travelling  expenses,  while  actually 
engaged  in  their  duties,  or  probably  it  would  be  as  well  to  fix  their 
per  diem  at  a  higher  rate  than  $5,  say  $8  per  day,  while  travelling 
through  their  districts,  and  necessarily  compelled  to  §tay  from  home. 
In  sect'on  thirteen,  assessment  act,  a  serious  mistake  exists,  which 
will  become  evident  by  inspection.  The  words  "district  collectors," 
in  the  4th  line  from  top,  were,  no  doubt,  erroneously  inserted  instead 
of  the  word  "assessors,"  as  the  reading  of  the  whole  section  will  show. 
The  collecting  of  lists,  that  is,  gathering  them  together,  arranging  and 
transfering  their  contents  to  general  lists,  it  will  be  seen  exclusively 
TDelongs  to  the  assessors,  and  the  latter  part  of  the  section  proves  it. 
For  this  work  is  to  be  done  before  the  collector  has  or  could  have 
anything  whatever  to  do  with  the  lists.  These  general  lists  are  to  be 
prepared  by  the  assessors  for  and  delivered  to  the  collectors.  I 
recommend  that  the  words  "district  collectors"  be  stricken  out,  and 
the  word  "assessors"  be  inserted  in  their  stead.  Under  section  twen- 
ty-four of  the  assessment  act,  it  is  declared  that  all  property,  credits, 
income,  and  profits,  and  every  article  or  object  subjected  to  taxation. 


shall  be  estimated,  valued,  and  assessed  at  the  value  thereof  at  the 
time  of  assessment,  in  Confederate  notes.  As  gold  and  silver  coin 
had  long  since  ceased  to  be  used  as  currency  and  had  become  (illu- 
sively articles  of  merchandise,  it  has  been  decided  that  these  articles 
or  objects  of  taxation  were  liable  to  be  taxed  at  their  market  value  in 
Confederate  notes  on  the  1st  of  July.  A  different  construction  would 
have  operated  very  unequally  and  unjustly  upon  those  holding  Con- 
federate notes  and  in  favor  of  those  holding  gold  or  silver  coin.  Gold 
and  silver  coin,  as  have  been  stated,  have  long  since  ceased  to  be  used 
as  currency,  and  have  been  bought  and  sold  in  market,  and  their 
price  has  been  established  by  the  laws  of  tradi>  like  that  of  any  other 
commodity.  Supposing  that  gold  was  worth  in  the  Richmond  market 
on  the  1st  of  July,  ten  dollars  in  Confederate  notes  for  one  dollar  in 
coin.  One  thousand  dollars  in  gold  coin  then  held  by  a  tax-payer 
was  worth  ten  thousand  in  Confederate  notes,  and  according  to  the 
ruling,  the  tax  in  Confederate  notes  is  one  hundred  dollars.  If  it  were 
taxed,  however,  at  par,  the  tax  would  only  be  ten  dollars,  precisely 
whfit  would  be  required  of  another  tax-payer  on  one  thousand  dol- 
lars of  treasury  notes.  The  result  would  be  that  the  man  who  held 
the  treasury  notes  would  really  pay  ten  times  as  much  tax  as  the  one 
holding  the  thousand  dollars  in  coin.  This  construction,  though  gen- 
erally acquiesced  in,  has  produced  considerable  complaint,  and  the 
banks  of  Richmond,  under  the  opinion  and  advice  of  the  Attorney 
General  of  the  State  of  Virginia,  have  protested-,  I  understand, 
against  the  collecting  of  the  tax  on  coin  under  this  decision.  The 
subject  is  of  sufficient  importance,  I  think,  to  demand  a  L'gislative 
construction  of  the  law.  It  would  also  be  well  for  Congress 
to  define  more  clearly  the  intention  of  section  forty-four.  The 
department  has  decided  that  every  person  is  presumed  to  be  willing 
to  receive  Confederate  notes  in  payment  of  a  credit  over  due.  held  by 
him,  until  the  contrary  is  proved  to  the  assessor.  But  if  the  face  of 
such  credit  calls  for  coin,  it  shall  be  assessed  at  the  premium  of  coin  ; 
or  if  it  calls  for  bank  notes,  or  other  paper  currency  bearing  a  pre- 
mium over  Confederate  notes,  it  shnll  be  assessed  at  the  premum  of 
such  bank  notes  or  bther  paper  currency. 

That  tlie  holder  cannot  be  questioned  as  to  his  willingness  to  re- 
ceive Confederate  notes  in  payment  of  such  credit,  but  if  the  assessor 
has  evidence  that  he  has  so  refused,  then  he  shall  value  the  credit, 
not  necessarily  as  coin,  but  according  to  the  valuation  placed  upon  it 
by  the  holder.  In  any  case,  however,  where  the  credit  has  been 
valued  at  a  higher  rate  that  Confederate  notes,  it  is  the  privilege  of  the 
holder  to  claim  a  reduction  of  such  valuation  to  the  standard  of  Con- 
federate notes,  by  endorsing  thereon  his  willingness  to  receive  such 
notes  in  payment. 

The  construction  of  this  section,  and  the  twenty-fourth,  in  connec- 
tion, has  given  rise  to  much  controversy  and  perplexity.  It  would 
be  well  for  the  act  to  prescribe  the  standard  of  valuation  in  casea 
where  pirties  refuse  Confederate  notes,  and  to  give  the  assessors 
pQjircr  to  interrogate  them  on  the  subject.  I  believe  it  would  be  wise 
policy  to  require  every  holder  of  a  credit  over  due  to  endoise  hia 


14 

Tviilinguess  to  receive  Treasury  notes  in  payment  or  submit  to  the 
specie  valuation.  This  would  array  a  powerful  influence  in  behalf  of 
the^pirreucy ;  be  making  all  the  holders  of  credits  so  endorsed 
directly  interested  in  upholding  and  sustaining  that  currency,  which 
thev  would  be  bound  in  writing  to  receive  in  payment  of  their 
credits. 

In  the  practical  operation  of  the  machinery  of  assessing  taxes,  one  of 
the  most  perplexing  of  ail  the  difficulties  encountered,  is  occasioned 
bv  the  Numerous  forms  of  individual  lists  which  it  has  been 
necessary  to  furnish  in  conformity  with  the  requirements  of  both  of 
the  acts.  Experience  has  shown  that  this  machinery  should  be  made 
as  simple  and  free  from  complexity  as  possible.  The  duties. of  asses- 
eors  and  collectors  are  necessarily  performed,  in  a  majority  of  cases, 
by  men  who  are  unaccustomed  to  the  forms  used,  and  it  is  verv 
difficult  for  them  to  understand  the  work.  Besides,  the  prices  of 
printing  and  paper  have  become  so  very  high  that  the  expense  of  fur- 
nishing these  lists  has  been  enormous,  and  from  present  indications 
will  be  increas:d  in  future.  It,  therefore,  becomes  an  object  to  get 
rid  of  this  source  of  expense  by  effecting  such  change  in  the  system 
as, will  enable  us  to  dispense  altogether  with  these  individual  lists, 
and  at  the  same  time  to  furnish  a  substitute  that  will  be  more  simple 
and  answer  all  practical  purposes. 

One  plan  would  be  to  abolir^h  the  individual  lists,  and  furnish  each 
assessor  with  a  tax  digest,  with  appropriate  columns  and  headings,  a 
separate  book  for  each  class  of  taxes,  corresponding  with  the  general 
lists,  into  which  the  individual  lists  are  copied,  under  the  present  sys- 
tem. When  his  assessments  of  any  particular  class  of  taxes  are  com- 
pleted, and  the  time  for  their  collection  h:is  arrived,  he  should  be 
required  to  make  a  copy  for  the  district  collector,  by  wbich  to  make 
his  collections,  and  a  copy  for  the  State  collector,  who  should  be  re- 
quired to  charge  the  district  collector  with  the  amount  of  the  tax 
digest  returned,  and  then  to  send  the  digest  to  the  Commissioner  of 
Taxes,  and  let  the  district  collector  beheld  responsible  for  the  amount 
of  the  digest  returned  to  him,  except  such  taxes  as  he  may  be  able  to 
show  cannot  be  collected,  as  now  required  by  law,  and  require  him, 
as  now,  to  return  his  duplicate  receipts  to  the  State  coMectcr.  Ac- 
cording to  some  such  plan,  the  various  lists  now  used,  which  are  so 
perplexing,  and  which  form  an  item  of  such  heavy  and  unnecessary 
expense,  would  be  dispensed  with.  This  would  greatly  simplify  the 
systeqa',  and  still  preserve  all  the  necessary  checks.  A  simple  sec- 
tion, embodying  some  such  plan,  and  repealing  so  much  of  either  act 
as  might  be  in  conflict  therewith,  would  be  all  that  is  necessary. 

The  same  plan  may  be  presented  in  another  shape:  abolish  all  the 
blank  lists,  as  in  the  other  case,  and  furnish  each  as  essor  v/ith  a  taji 
book,  or  digest  of  each  class  of  taxable  objects  suited  to  the  same 
book.  Let  these  books  each  consist  of  an  original  and  copy,  and  let 
R  sufiicient  number  of  loose  leaves  of  the  same  books,  to  be  called  as- 
sors'  sheets,  be  placed  in  the  hands  of  the  assessors.  Eight  or  ten  of 
these  sheets  would  hold,  perhaps,  four  or  five  hundred  names,  and 
could  be  easily  carried  about,  and  the  name  of  the  tax  payer,  when 


'15 

ne  made  his  return,  could  be  signed  opposite  thereto,  and  the  oath 
could  be  administered  to  him,  and  at  the  foot  of  the  page  the  assessor 
could  ccrrify  that  all  the  returns  above  wrilten  were  swcrn  to.  When 
a  leaf  is  filled,  it  can  be  banded  to  the  collector,  to  arrange  the  names 
alphabetically  in  his  book.  The  assessors'  sheets  can  al'terwards  be 
bound  up,  and  the  collectors'  books  examined  by  them. 

The  same  plan  can  be  pursued  with  the  tax  in  kind.  Each  quar- 
termaster should  have  a  book  corresponding  with  the  assessors'  sheets, 
aud  as  soon  as  the  assessor  has  finished  with  the  leaves,  he  can  trans- 
fer them  to  the  quartermaster,  to  enter  the  names,  alphabetically,  in 
his  hook,  with  the  produce  returned,  or  he  might  furnish,  from  time  to 
time,  a  list  of  names,  with  a  stateilient  of  the  produce  then  served, 
kc,  to  the  quartermaster.  Then  the  assessor  would  make  out  an 
original  book,  and  one  or  two  copies  of  it,  as  may  be  necessary.  One 
of  these  copies,  certified  by  the  State  collector,  can  be  turned  over  to 
the  War  Department,  as  a  correct  certified  list  o(  the  amounts  of  the 
tax  in  kind.  By  this  book  the  War  Department  can  call  upon  the 
quartermaster  to  account,  and  copies  of  all  li.-^ts  furnished  to  the  quar- 
termaster, fr"!m  time  to  time,  may  accompany  this  book,  with  the 
quartermaster's  receipts. appended  thereto,  which  lists  and  receipts 
shall  be  proof  against  him.  When  the  quartermaster  fails  to  collect 
the  articles  in  kind,  he  can  fill  up  such  number  of  these  sheets  as  may 
be  necessary,  with  the  names  and  returns  or  estimates,  of  the  de- 
faulters, to  the  collector,  properly  certified,  ond  a  copy  of  these  de- 
fault lists  can  be  sent  through  the  chief  collector  to  the  War  Depart- 
ment, to  be  credited  to  the  post  quartsrmaster's  account. 

The  whole  country  is  flooded  with  counterfeit  treasury  notes,  and 
many  of  them  are  so  skillfully  executed  that  it  is  very  dilHcuh  to  de- 
lect'them.  State  C'.llcctors  have  been  instructed  to  caution  their  col- 
lectors upoji  this  subject,  and  to  preserve  the  means,  as  nearly  as  prac- 
ticable, of  tracing  back  all  rejected  notes  to  the  persons  from  whom 
they  may  have  been  received.  Notwithstanding  these  precautions, 
many  of  the  collectors  will  be  unable  to  do  so.  I  would,  therefore, 
lespectfully  recommend  the  passage  of  a  law  to  indemnify  or  relieve 
such  collectors,  similar  to  the  act  of  Congress  approved  May  1,  1863, 
for  the  relief  of  public  officers  who  received  counterfeit  treasury  notes, 
m  certain  cases,  prior  to  the  1st  of  Jannary,  1803. 

A  serious  obstacle  has  been  encountered  in  the  effort  to  secure  the 
tax  on  a  large  amount  of  tobacco  stored  in  the  public  warehouses  of 
Virginia,  on  the  first  of  July.  Thpse  warehouses  belong  to  the  State, 
and  are  under  the  control  of  State  officers  called  inspectors.  When 
tobacco  is  stored  there,  by  farmers  or  others,  a  ticket  or  tobacco 
liOte  is  issued  to  the  person  storing,  and  this  ticket  or  note  is  negotia- 
ble, and  passes  from  one  holder  to  another  when  the  tobacco  is  sold, 
v;hich  is  often  done  without  removing  it.  A  lot  of  tobacco,  thus 
stored,  may  pass  through  a  half  dozen  hands  before  it  is  delivered, 
and  the  person  presenting  a  ticket  is  entitled  to  receive  the  tobacco. 
There  is  a  statute  of  the  State  requiring  its  deliyery,  under  heavy 
penalties,  within  ten  days  after  demand  and  presentation  of  the  ticket, 
The  tobacco  in  theso  warehouses  on  the  first  of  July,  has  been  enu- 


16 

tnerated  and  assessed  to  the  agent  in  charge,  that  is  the  inspector, 
under  the  provisions  of  section  fifteen  of  the  tax  act.  According  to 
this  act,  the  Government  has  a  lien  upon  the  tobacco  itself  from  the 
date  of  assessment,  hut  the  difficulty  is  to  be  found  in  the  fact  that 
the  lien  cannot  be  enforced,  without  coming  in  direct  conflict  with  a 
law  of  the  State.  The  inspector  contends  that  he  is  bound  to  deliver 
the  tobacco  in  obedience  to  a  State  law,  without  legard  to  the  lien  or 
the  payment  of  the  taxes  due  upon  it.  The  consequence  is,  whenever 
a  holder  of  a  ticket  presents  it,  and  demands  the  lot  of  tobacco  it  calls 
for,  the  same  is  delivered  and  the  Government  deprived  of  the  lien. 
But  for  this  State  law  the  inspector  would  be  held  responsible  for  the 
taxes  under  section  j&fteen,  and  he  would  thus  be  forced  to  secure  the 
payment  of  the  tax  before  he  delivered  the  tobacco.  It  Avill  at  once 
be  seen  that  it  is  utterly  impossible  for  the  assessors  to  ascertain  who 
were  the  owners  of  the  tobacco  on  the  first  of  July,  because,  in  nine 
cases  out  of  ten,  it  may  have  changed  hands  since  the  time  it  was 
stored.  This  subject  demands  the  immediate  consideration  of  Con- 
gress. 

Accompanying  this  report  you  will  find  a  tabular  statement  marked 
"A,"  which  exhibits,  statistically,  the  valuations  of  the  different 
species  of  property  embraced  within  the  provisions  of  the  act  of 
August  19th,  1861,  so  far  as  ascertained  from  the  collated  lists  of  the 
several  Chief  Collectors.  For  reasons  explained  in  my  report  of 
January  6th,  1863,  the  operations  of  this  act  were  suspended  in  the 
States  of  Kentucky  and  Missouri,  but  were  fully  effective  in  the  remain- 
ing eleven  of  the  Confederate  States,  except  in  a  few  districts  occu- 
pied by  the  public  enemy.  The  following  remarks  will  explain,  in 
brief,  the  condition  of  the  assessments  and  collections  irl  each 
State. 

Alabama. — Assessments  were  made  in  all  the  districts  of  this  State, 
except  the  counties  of  Franklin,  Lawrence  and  Winston,  the  taxes  in 
which  are  estimated  at  $72,619  74,  which,  added  to  the  net  tax  of  the 
remaining  districts  makes  a  total  of  $2,141,087  47,  for  the  payment 
of  which  the  sum  of  $2,000,000  was  advanced  by  the  State,  leaving 
a  balance  due  the  Confederate  States  $141,087  47.  Previous  to  the 
final  report  of  Judge  Martin,  the  Chief  Collector,  it  w\as  estimated 
that  the  whole  tax  would  not  exceed  $1,800,000,  and  provision  was 
made  by  act  of  Congress,  approved  February  20th,  1863,  to  refund 
the  excess  paid  by  the  State,  when  a  settlement  should  be  made.  It 
appears,  however,  that  this  amount  was  under  estimated,  and  the 
balance  above  reported  of  $141,087  47,  is  still  due  the  Confederate 
States. 

Arkansas. — Forty-seven  districts  assessed — eight  unassessed.  The 
whole  amount  of  net  tax  assessed  in  the  forty- seven  districts  above 
mentioned  $551,606  03  (as  per  report  of  Chief  Collector,)  of  which 
the  sum  of  $400,000  was  paid  by  the  Executive  to  General  Hind- 
man's  quartermaster,  but  which,  from  informality,  has  not  yet  received 
proper  credit  upon  tho  books  of  the  Treasurer,  leaving  a  balance  due 
by  the  State  of  $151,606  03. 

Florida. — All  the  districts  assessed  except  the  counties  of  Duval 


17 

and  Clay,  fourteenyi  district,  and  St.  John's  district,  fifteenth,  which 
are  occupied  by  the  public  enemy. 

Georgia. — Full  assessments  made.     See  table  "  A-" 
Louisiana. — Whole  amountof  net  tax  due  by  the  State,  $.2,424,174  39, 
for  the  paymentof  which,  the  sum  of  $2.501), (M)0  was  advanced  by  the 
State,  the  excess  of  which,  amounting  to  $75,825  6  1  has  been  refunded 
under  authority  of  acts  of  Congress. 

Mississippi. — All  the  districts  in  this  State  have  been  ar.'iessed, 
and  tbe  collections  were  made  by  Confederate  officers,  as  the  payment 
of  the- tax  was  not  assumed  by  the  State.  The  whole  amount  as- 
certained to  be  due,  is  $2,241,003  20,  of  which  $2.09-:l,990  23  ha^ 
been  reported  to  the  Treasurer  as  paid,  leaving  a  balance  due  of 
$146,012  97,  a  large  proportion  of  which  is  comprized  in  tbe  lists  of 
delinquent  tax  payers,  alien  enemies,  kc.  Owing  to  the  unfortunate 
condition  of  the  State,  arising  out  of  its  occupancy  by  the  enemy,  the 
difficulties  of  communication,  &c.,  it  has  been  found  impractible  to 
obtain  satisfactory  reports  from  all  the  districts.  The  filial  report  of 
Judge  Handy,  the  chief  collector,  has  been  received,  and  it  shows 
that  all  the  collections  made  by  him  have  been  faithfully  accounted 
for. 

North  Carolina. — All  the  counties  assessed,  and  total  net  tax  ascer- 
tained to  be  $1,288,825  31,  for  the  payment  of  which  the  sum  of 
$1,400,000  00  was  advanced  by  the  State,  the  excess  of  which 
$U  1,174  69,  was  refunded  the  Stl^,  under  authoYity  of  act  of  Qon- 
gress,  approved  Oct.  8,  1862. 

South  Carolina. — The  follovting  oxtract  from  my  report  of  January 
6th,  1863,  will  explain  the  condition  of  the  M'ar  tax  in  this  State: 
"  All  the  districts  and  parishes  in  this  State  were,  in  like  manner, 
assessed,  but  several  psyiehes,  contiguous  to  the  Sea,  and  navigable 
waters  near  the  coast,  have  been  subjected  to  the  invasion  and  depre- 
dations of  the  enemy.  For  this  reason.  Governor  Pickens  claimed  ex- 
emption by  virtue  of  the  act  of  19th  April.  1862,  for  the  following 
parishes,  to  wit :  All  Saints,  St.  Georges, .AVinyan,  St.  Helena,  St. 
John's  Colleton,  Saint  Adrews,  St.  Lukes  and  St  James'  Santee,  and 
a  deduction  from  the  ascertained  quota  of  the  State  of  the  full  amount 
of  taxes  assessed  in  these  parishes.  After  a  prolonged  correspond- 
ence with  the  Governor,  in  which  he  was  urged  to  relin;.'uish  his  de- 
mand, and  pay  up  the  full  quota,  he  declined,  and  insisted  upon  the 
exemption,  and  as  the  tax  books  had«  been  turned  over  to  the  State  au- 
thorities, and  the  Confederate  collectors  had  been  discharged,  theie 
was  no  other  alternative  left  than  to  acquiesce  in  his  demand,  with 
the  understanding  tlijft  all  moneys  collected  in  these  parishes  should 
be  paid  over  to  the  Confederate  States."  The  whole  amount  of  taxes 
assessed  in  the  State,  after  deducting  ten  per  cent,  is  $1,708,076  52, 
There  has  Jseen  paid  by  the  State  $1,651,525  bo,  leaving  a  balance  of 
$146,547  97,  being  a  sum  less  than  the  amount  of  assessment's  in  the 
exempted  parishes,  after  deducting  ten  per  G"nt.  tho,refrom.  the  sum 
assessed  in  these  parishes,  less  ten  per  cent.,  is  $151,995  60,  the  difier- 
crence  against  the  government  being  $5, -147   63. 

Tennessee. — No  organization  has  been  made  in  this  State.     The  net 
2 


18 

tax,  due  by  the  State,  as  estimated  by  the  chief  collector,  is  $2,205,000, 
of  which,  the  sum  of  $1,499,766  77  has  been  paid,  leaviog  a  balance 
of  $705,233  23  due  and  unpaid. 

Texas. — Collated  lists  of  property,  rendered  for  assessment  of  non- 
rendered  property,  and  property  cf  alien  enemies,  returned  by  re- 
ceivers under  the  sequestration  laws,  has  been  received  from  the  chief 
collector,  which  show  an  aggregate  valuation  of  $318,214,621,  the 
tax  upon  which  (including  the  double  tax  upon  non-rendered  property,) 
i»  $1,553,917  80.  There  has  been  collected  and  paid  into  the  Treas- 
ury, 80  as  reported  to  the  Tresurer,  the  sum  of  $1,242,^64  51  leaving 
r  balance  due  of  ^41 1,313  54,  Additional  credit  is  due  the  state  for 
taxes  on  sequestered  property,  funds  for  the  payment  of  which  were 
not  in  the  hands  of  receivers,  &c.,  but  owing  to  the  difficulties  of 
n;ail  communication  no  acccurate  or  satisfactory  statement  thereof 
can  be  received.  So  far  as  ascertained,  the  chief  collector  has  faith- 
fully accounted  for  all  his  collections. 

Virginia. — There  are  in  this  State  one  hundred  and  forty-nine 
Ciuaties  and  eleven  cities,  constituting  as  many  collection  districts. 
Ninety -seven  counties  and  nine  cities  have  been  assessed  and  returned, 
IrtiviDg  fifty-two  counties  and  two  cities  (Alexandria  and  Wheeling.) 
which  have  not  been,  assessed  or  returned.  In  the  northwestern  coun- 
tioa,  for  apparent  reasons,  no  attempt  has  been  made  to  appoint  offi- 
cere,  or  to  procure  assesments.  L|i  other  counties  in  the  eastern  part 
of  the  State,  where  the  people  are  loyal  and  patriotic,  collectors  were 
ftppointed  and  had  given  their  bonds,  but  before  the  assessors  had  en- 
tered upon  their  duties,  the  invasion  of  the  enemy  arrested  further 
progress.  The  aggregate  amount  of  assessment  returns,  as  shown  by 
the  chief  collector  s  final  report  is,  $548,164,215  91.  The  tax  on  this 
at  1-a  per  cent.,  is  $2,740,821  07,  and  the  ntt  tax,  after  deducting  ten 
.p.-ir  cent,  is  $2,466,738  97.  The  amount  paid  by  the  State,  as  shown 
by  the  Treasurer's  books,  is  $2,125,000,  leaving  a  balance  of 
|84l,788  97. 

Respectfully  submitted, 

THOMPSON  ALLAN, 
Commissioner  of  Taxes, 


ASSESSMENTS  WAK  TAX.— ACT  AUliUST  laiH,  1S6I.— PAYMENTS  AS  FAR  AS  KKPuRTED  TC/  TREASURER,  JULY   l»i,   1803. 


STATES 

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I,>«2,™  OO                 m  ool         122,123  O^i      T,««8,2»S  OOJ      1,002,200  Oo!         020,2M  Ooj     210,627  00 
740,608  oo!        403,887  00^      331,049  Ooj     0,087,168  OOi     .  fl76,8M  Ooj        083,38100!     »3,3I4  00 

1 

i  2.269,417  00 
mji29  00 
274,421  OP 
3.351,W7  00 
1,100,191  60 
2,U6,806  00 
l,060,fi3fi  00 

2,139,334  3J 

,    1,880,167  H 

71,040  OO 
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1,030,313  X 
2,465,601  »5 

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81,069,887  oo!       4A,T8t  T8P  00 
15,607,808  ooj       34,117,260  00 

663.101  60 
830,401  32 
(62,231  60 

916,020  00 

113,081  00 
79,817  00 
840,984  60 

475,076  00 
e»,eB6  00 

396,974  00 
631,426  00 

286 
.480 

5jg,117  00 
480,561  OO 
173,040  83 
821,320  01 
810,073  00 
405,028  00 
403,798  00 
000,000  00 
280,071  00 

012 

f  2,771 
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1,9117 
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f    :;,068,407  78;»    2,000,000  08 
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3,104,112  41       3,404,113  11 
3,131,171  Sej      2,t31,174  80 
3.311,003  20       3,001,600  33 
1.288.836  81    .  1,368,826  81 

•    6141,087  47 
735  77 

1148  01107 

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349,016.631  48|     178,022.760  eoj    17,904.330  SO 
162.e3«,12S  00       23:,17fl.7M  Ooj      6,a86,MT  OO 
D7,681y4M  Ooj     101,487,006  00      8,641,100  00 

23,040,074  81  ^"°'{;''„',^;;     |    «1,«M,743  0»1      «,3«3,337  Osj      3,208,668  0011,013,046  00 

404.313  OO      I,4«3,047  00|    »3,078,m  Ooj      3,003,387  00|         201,516  Ooj     863  007  OO 

7,317,302  00      l,308,40<0o|.  30,267,231  ooj      4,611,624  00          346,337  00      684,240  00 

13,708,032  ooj    10,460,288  Oo' ^.816,126  Ooj      3836,47100          117,014  00,     862,273  00 

3,627,204  00  Ri"turn  B&nk  ]    32,306,161  0*     3,607,412  00    M,046,642  OO'     619,426  00 

MiMlMipP 

iai,811,370  00       97,06B.ai4  Oo|     fi,7!IT.601  00 

2,206,#  00       l,*1t0K  77          706,433  23 
1,064,278  06,      1,111,061  61          411,813  54 
2,460,738  07       2,126,000  00         811,788  97 

Job  rtbdmavroponv.                u.m'.m  oo       'm.m  Z 

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2,140 

821  OV 

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u,'d™».T.™;;ife"u"''„"lJrofw"M,l'"°'°                 '''''' 

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•1,393,715,760  1^4!  11,480,800,060  17  «  67,631,888  (ijl  04,486,331  481  61,603,063  18i*tS8,786,488  lOjS 41,800,M1  88  f  44,683,368  38  »7,l6B,a80  00 

..,6..,6.,.. 

,6,4,4,120» 

S  18.313,670  76 

•  10,147,201  03 

81,320,766,834  21 

821,142,002  78 

1 19,418,39:^  49.1 17,446,780  2S|f|  3,044,376  96 

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t' 


■m 


PtEF^O  RT 


or   THE    CHIEF    CLERK 


PRODUCE  LOAN  OFFICE. 


Treasury  Department,  C.  S.  A.,      ) 
Produce  Loan  Office,  November  30,  1863.  \ 

SrR  :  I  have  the  honor  to  submit  the  following  report,  for  your  in- 
formation, concerning  the  operations  of  this  office : 

Under  the  act  of  Congress,  approved  May  1st,  1863,  entitled  "  Au 
act  to  amend  au  act  to  organize  the  clerical  force  of  the  Treasury 
Department,"  the  principal  clerk  of  the  produce  loan  was  raised  to 
the  grade  of  chief  clerk,  and  charged,  under  your  direction,  with  the 
duty  of  supeiintending  and  conducting  the  business  of  said  office. 
This  business  has  become  very  much  enlarged  since  the  first  organi- 
zation of  the  office,  and  now  pertains  to  three  distinct  classes,  viz  ; 

I.  The  collection  of  subscriptions  to  the  produce  loan  proper. 

II.  The  purchase  of  cotton  and  tobacco  under  the  act  of  April  21, 
1862. 

III.  The  collection  of  cotton  and  tobacco  in  kind  under  the  tax 
act  of  April  24,  1863. 

It  will  be  most  convenient  to  report  operations  under  each  head 
separatel}-. 

I.  The  total  amount  of  original  subscriptions  to  the  produce  loan, 
as  stated  in  my  report  of  January  9th,  1863,  is  $23,070,905,  con- 
sisting of  bales  of  cotton,  431,347;  cash  $608,375;  miscellaneoua 
$895,180.  In  that  report,  cotton  was  estimated  at  $50  per  bale,  which 
was  a  fair  valuation  at  the  time,  but  it  is  altogether  too  low  for  the 
market  rates  current  during  the  past  six  or  eight  months.  It  is  proper, 
then,  to  add  fjr  subscriptions  paid  during  that  period,  and  for  those 
still  remaining  unpaid,  say  $5,000,000,  for  under  estimate  of  valua- 
tion. The  total  amount  of  original  subscriptions  with  this  addition,  is 
$28,070,905.  Besides  collecting  the  original  subscriptions,  the  pro* 
duce  loan  agents  were  authorized  to  receive  and  collect  new  subscrip- 
tions, whether  of  produce  or  money.  The  total  amount  of  such  sub- 
scriptions, or  in  other  words,  the  amount  of  treasury  notes  funded  by- 
produce  loan  agents  's  $16,956,050.  This  added  to  the  amount  above, 
gives  $45,026,355,  as  the  total  of  su^^^v.^iptions,  origin  ,1  and  new. 


•       20 

The  subscriptions  to  the  produce  loan  were  the  proceeds  of  the 
sale  of  the  articles  subscribed,  not  the  articles  themselves  in  kind,  so 
that  all  payments  made  to  agents  were  payments  in  cash.  • 

The  following  statements  will  show  tho  amounts  collected  up  to  this 
time: 

**        Original  Subscriptions. 

Amount  collected  in  Alabama,  $5,142,500 

*♦  "  ''   Georgia,  4,574,400 

"  **  "  Sou  h  Carolina,  3,493,350 

■"  "  «•   Texas,  723,050 

'"  "  **  Louisiana  and  Mississippi,    583,950 

•*'  "  ''  Florida,  343,800 

"  *'  *'  North  Carolina,  59,700 

*♦.  "  **   Virginia,  20,200 

'        .  *                                                                 $14,940,950 

New  Subscriptions. 

Amount  collected  in  South  Carolina,  $11,171 ,250 

"  "  Alabama,  3,45i,500 

"  *'         ''  Florida,  1,217,200 

"  "         "  Georgia,  1,110,100 

16,956,050 


Total,  $31,897,000 

To  show  the  entire  amounts  of  payments,  it  will  be  proper  to  add 
'fco  the  above,  the  cotton  sold  to  the  government  by  original  subscri- 
bers to  the  loan.  The  number  of  bales  thus  sold,  as  nearly  as  can  be 
estimated  from  the  reports  received  at  this  office,  is  17,825,  averaging 
$75  each,  or  $861,875  for  the  whole.  This  added  to  the  amount  pre- 
viously stated,  gives  $32,758,875  as  the  grand  total  of  collections, 
leaving  unpaid  $12,26^,080. 

Until  the  exhaustion  of  the  one  hundred  million  loan,  and  the  pas- 
sage of  the  currency  act  of  March  23,  1863,  eight  per  cent,  bonds 
were  issued  alike  to  old  and  new  subscribers  on  payment  of  their  sub- 
scriptions, but  since  then,  under  the  authority  of  the  act  of  February 
20,  1803.  This  discription  of  bonds  has  been  issued  to  original  sub- 
Bcribers  only,  in  order  to  comply  with  the  terms  on  which  the  govern- 
ment receive  these  subscriptions.  Notice  was  given  to  these  sub- 
scribers that  the  privilege  of  receiving  eight  per  cent,  bonds  would 
expire  on  the  3 1st  day  of  July  then  ending,  and  since  that  time  bonds 
have  been  issued  to  them  according  to  the  currency  in  which  they 
have  made  their  payments.  Inducements  of  self-interest  having 
Qeased,  collections  have  fallen  off  very  considerably,  and  it  is  not 
likely,  unless  some  energetic  measure  of  compulsion  be  adopted,  that 
a  great  deal  more  will  be  collected.  It  might  have  a  good  effect  to 
publish  in  each  State  a  list  of  delinquent  subscribers. 


21 

It  is  proper  to  mention  that  many  of  the  original  suhscribers  are 
in  the  army,  have  moved  from  their  former  hom^s,  and  some  have 
died  and  their  families,  in  a  few  instances,  are  unable  to  make  pay- 
ment. In  several  cases  the  subscriptions  of  these  classes  have  been 
assumed  and  paid  by  other  parties. 

Cotton  and  Tobacco  Purchases. 

II.  The  amount  of  cotton  purchased  during  the  past  year  has  not 
been  so  large  as  was  anticipated.  This  is  owing  to  several  causes, 
the  principal  of  which  are  the  encroachment  of  the  enemy  upon 
some  of  our  largest  cotton  growing  regions,  as  in  Louisiana,  Arkan- 
sas and  Mississippi,  the  exhaustion  of  the  one  hundred  million  loan 
and  the  unwillingness,  at  first,  of  planters  and  other  holders  of  cotton 
to  sell  for  seven  per  cent,  bonds,  and  the  requirement  of  the  act  of 
April  30th,  1863,  that  future  purchases  of  cotton  and  tobacco  should 
be  made  with  the  proceeds  of  the  sale  of  cotion  bonds,  the  unavoida- 
ble delay  in  the  preparation  of  these  bonds  and  afterwards,  delay  in 
realizing  cash  from  their  sale,  making  it  necessary  to  suspend 
purchases  altogether  for  several  months.  This  last  obstacle  having 
been  removed,  the  agents  have  been  furnished  with  fun(?s  and  in- 
structed to  resume  purchases.  The  statements  below  will  show  the 
total  amount  of  purchases  up  to  this  time,  so  far  as  reports  from 
agents  have  been  received. 

Purchases  in  Alabama,  126,838  bales,  costing  $11,879,465  07 

"  Mississippi,  120,459  **  "  6,899,965  19 

"  Louisiana,  106,793  '«  "  6,739,762   13 

*'  South  Carolina,  18,888  **  *'  3,081,756  38 

**  Georgia,  15,028  *'  "  1,066,676  38 

''  Arkansas,  11,697  ''  ''  643,270  64 

«'  Florida,  50  "  ''  3,873  61 


399,753       "  "         $30,314,769  40 

No  reports  have  been  received  from  the  agent  in  Texas,  but  the 
amount  purchased  for  this  department  in  that  State  is  probably  very 
small,  owing  to  the  fact  that  the  War  Department  has  an  agent  there, 
and  it  was  deemed  advisable  to  surrender  the  greater  part  of  the 
State  for  his  operations,  that  there  might  be  no  enhancement  of  prices 
from  the  competition  of  different  sets  of  government  agents. 

The  average  price  paid  per  pound  is  as  follows,  for  the  different 
States,  viz :  in  Arkansas,  12}  cents,  in  Mississippi  12.39  cents,  in 
Florida,  13  cents,  in  Louisiana  14  cents,  in  Georgia,  15i!  cents,  in 
Alabama,  21  cents,  and  in  South  Carolina,  36i  cents.  The  average  is 
highest  in  South  Carolina,  because  a  portion  of  the  purchases  con- 
sisted of  sea  island  cotton.  The  total  average  for  all  the  States,  is 
16.85  cents.  The  highest  price  paid,  exclusive  of  sea  island  cotton, 
is  37  cents  per  pound,  and  the  lowest  is  6^  cents  per  pound,  for  a 
small  lot  purchased  by  Mr.  DeB^w,  in  1862.     The  general  average 


SI2 

is  low,  because  a  considerable  portion  of  the  cotton  was  purchased 
before  the  recent  extraordinary  inflation  of  prices.  All  the  latter 
purchases,  east  of  the  Mississippi  riv^er,  have  been  made  at  the  cur- 
rent high  rates,  but  prices  in  the  trans-Mississippi  States  are  still 
comparatively  low. 

By  far  the  greater  portion  of  the  cotton  purchased  thus  far,  has 
been  paid  for  with  bonds,  but  as  settlements  have  not  yet  been  made 
in  numerous  instances,  it  is  impossible  to  state  with  a  'cuiacy,  the 
proportion  of  bonds  and  cash  expended.  It  is  safe,  however,  to  as- 
sume that  more  than  five  sixths  of  the  purchases  have  been  paid  for 
with  the  first.  The  earlier  purchases  were  made  almost,  exclusively 
with  bonds. 

I  regreat  that  I  am  unable  to  give  you  any  precise  information  as  to  the 
quantity  of  Government  cotton  lost  by  falling  into  the  hands  of  the  ene- 
my or  destroyed  to  prevent  capture.  Soon  after  the  fall  of  Vicksburg 
and  Port  Hudson,  orders  were  given  to  the  produce  loan  agents  in 
Mississippi  and  Louisiana  to  organize  a  system  with  the  approbation 
and  co-operation  of  the  military  authorities  in  those  States,  to  remove 
such  cotton  as  could  be  preserved,  to  safe  localities,  and  to  destroy 
such  as  would  be  likely  to  fall  into  possession  of  the  enemy,  but 
avoiding  distruction  from  mere  panic,  and  directions  were  gi^en  to 
make  detailed  reports  to  this  ofiice,  showing  the  amounts  thus  lost  and 
preserved.  These  reports  have  not  yet  been  received.  Letters,  how- 
ever, have  come  to  hand,  giving  general  estimates  of  losses.  Mr. 
McKci ,  the  agent  in  Louisana,  writes,  on  the  30th  Angust,  last,  that 
his  losses  will  not  exceed  1500  bales.  Mr,  DeBow,  in  Mississippi, 
estimates  that  30,000  bales  will  cover  the  entire  amount  of  his  losses. 
Both  of  these  gentleman  have  matured  plans,  and  are,  at  this  time, 
energetically  engaged  in  removing  cotton  from  exposed  districts  of 
country.  In  addition  to  the  above  losses,  several  thousand  bales  have 
been  used  for  military  and  naval  purposes,  in  the  construction  of  forts 
and  in  the  protecting  and  strengthening  of  gunboats.  I  think  that 
it  would  be  safe  to  estimate,  that  the  total  losses  thus  far,  will  not 
exceed  50,000  bales. 

In  order  to  show  the  amount  of  cotton  now  on  hand,  it  will  be  neces- 
sary to  deduct,  besides  the  above  losses,  4,628  bales,  turned  over  to 
the  Ordnance  Bureau  for  shipment  abroad,  15,000  bales  recently 
■ordered  to  be  turned  over  to  the  Quartermaster  General's  office,  to 
satisfy  an  executed  contract  for  army  supplies  and  574  bales  shipped 
abroad  on  account  of  the  Treasury  Department.  Making  these 
deductions,  amounting  in  all  to  70,203  bales,  there  will  remain  on 
hand  at  the  present  time,  according  to  reports  received,  329,551  bales. 
•The  agents  in  most  of  the  States  have  reported  to  this  office  that  the 
rope  and  bagging  on  bales  of  cotton,  in  some  instances,  have  begun  to 
-decay  and  that  it  will  be  necessary  in  order  to  preserve  the  cotton  to 
make  repairs.  They  have  been  instructed  to  appoint  travelling  sub- 
agents  to  look  after  this,  and,  as  far  practicable  to  put  and  keep  the 
cotton  in  good  condition.  In  view  of  the  uncertain  duration  of  the 
war,  I  think  that  it  would  be  well  to  make  some  arrangement  for  the 
importation  of  rope  and  bagging  iiu  large  quantities  for  the  purpose 


23 

of  repairing  and  rebaling  or  else  the  Grovernment  will  be  exposed  to 
the  hazard  of  suffering  very  heavy  losses.  It  is  impossible  to  make 
any  specific  estimate  of  the  amount  which  will  be  required,  but  any 
surplus  which  the  Government  might  have  could  easily  be  disposed  cf 
to  planters  in  exchange  or  in  part  payment  for  cotton. 

The  appropriation  of  thirty-five  millions  of  dollars  by  the  act  tf 
April  21,  18G3,  for  the  purchase  of  cotton  and  tobacco  is  nearly 
exhausted,  and  if  it  is  contemplated  to  continue  purchases,  it  "will  be 
necessary  that  another  appropriation  bo  made,  but  for  obvious  rea- 
sons, I  make  no  suggestions  as  to  the  amount.  Seven  per  cent,  bonds 
can  still  be  used  to  a  considerable  extent  in  making  purchases,  and  it 
would  probably  be  best  to  have  authority  to  use  both  bonds  and 
Treasury  notes,  as  one  or  cither,  or  both  together  could  be  used  to  the 
best  advantage. 

^bout  30,U()0  bales  of  the  cotton  purchased  by  this  department 
are  stored  in  warehouses  in  cities  and  the  remainder  on  plantations 
in  the  respective  States  where  it  was  purchased. 

The  amount  of  tobacco  purchased  is  2,091)  hogsheads,  costing 
$772,846  82,  and  the  average  price  paid  per  pound  is  twentj-nine 
cents.     The  whole  of  it  was  purchased  in  Virginia. 

III.     Cotton  and  Tobacco  to  be  CoLLFiCTED  under  the  Tax   Act. 

Under  the  requirements  of  the  act  of  April  21st,  the  cotton  uiA 
tobacco  collected  in  kind  by  the  post  quartermasters  is  to  be  deliv- 
ered to  the  agents  of  the  Secretary  of  the  Treasury,  and  you  have 
deemed  it  most  conducive  to  the  public  interest  to  place  the  superin- 
tendence over  these  collections  in  this  office.  As  the  law  docs  not 
require  the  delivery  of  the  cotton  and  tobacco  until  next  Mar^b, 
nothing  has  been  done  as  yet,  and  nothing  can  be  done,  except  10 
appoint  general  agents  and  to  prepare  "Regulations,"  copies  of  v/hicb 
will  be  found  appewicd  to  this  report,  marked  A  and  B.  Cotton  rcq  ail- 
ing no  special  treatment,  the  agents  of  the  produce  loan  can  easily  re- 
ceive and  take  care  of  it,  for  which  they  will  be  entitled  to  some  additioa 
to  their  present  compensation,  and  you  have  accordingly  authorized  a 
per  centage  to  be  paid  them  for  this  service,  limited  by  a  maxim  urn, 
which  has  not  yet  been  fixed.  In  view  of  the  scarcity  of  rope  ancJ 
bagging  and  the  difficulty  of  procuring  it,  it  may  be  necessary  to 
receive  this  tithe  cotton  put  up  in  boards  or  to  get  authority  from 
Congress  to  purchase  rope  and  bagging  and  furnish  it  to  planters  free 
of  charge  or  at  cost  price. 

The  many  processes  required  to  place  tobacco  in  merchantable  coa- 
dition,  has  rendered  it  necessary  to  appoint  special  agents  to  look 
after  and  preserve  it.  These  agents  have  been  instructed  to  district 
the  States  where  it  is  grown,  and  -appoint  skillful  sub-agente  to 
receive  it  from  the  producers  onlv  in  proper  condition,  to  assort, 
order  and  prize  it,  and  then  put  it  in  boxes  or  hogsheads  suitable  for 
market.  The  exercise  of  skill  is  required  in  the  selection  of  the 
proper  time  for  each  of  these  processes,  as  well  as  the  performance  of 
the  processes  themselves.     I  have  been  informed  by  many  pereona 


familiar  with  the  cultivation  and  preservation  of  tobacco  that  it  can- 
not be  delivered  in  proper  condition  for  handling  before  May  or  June, 
and  it  will,  therefore,  be  necessary  to  modify  the  provisions  of  the 
law  requiring  its  delivery  before  the  first  of  March  next.  This  is  a 
matter  of  the  utmost  importance,  and  I  invite  your  special  attention 
to  it  that  3^ou  may  make  suitable  recommeudation  to  Congress. 

It  would  also,  I  have  been  informed,  conduce  greatly  to  conve- 
nience in  making  coHections  and  promote  the  public  interest,  if  some 
other  slight  changes  be  made  in  the  law  according  to  the  memorandum 
herewith  inclosed. 

The  clerks  in   this  office   during  the   past  year  have  been  prompt, 
faithful,  and  deligent  in  the  performance  of  their  respective  duties. 
I  am,  very  respectfully, 

A.  ROANE, 
Chief  Clerk  iii  charge  of  Produce  Loan  Office^ 
Hon.  C.  G.  Memminger, 

Secretary  of  the   Treasury. 


[A.] 


Treasury  Department,  C.  S.  A., 
Uichmond,  Nov.  16,  186 J. 

The  following  regulations  will  be  observed  by  Produce  Loan 
Agents : 

1 .  The  general  agent  of  the  produce  loan  in  each  State,  shall 
receive  from  the  post  quartermasters,  appointed  to  collect  the  tax  in 
kind,  under  section  thirteen,  of  the  act  of  April  24,  1863,  all  the  cotton 
collected  by  them  from  time  to  time,  receipting  for  the  same  in  dupli- 
cate, one  of  which  receipts  shall  be  transmitted  to  the  Secretary  of 
the  Treasury. 

2.  The  cotton  collected  as  above,  shall  be  marked,  weighed,  classified 
and  stored,  subject  to  the  order  of  the  general  agents,  in  the  quar- 
termaster's depot,  if  it  can  be  kept  there  sa:fely  and  conveniently; 
otherwise,  it  shall  be  stored"  in  some  warehouse  or  covered  building, 
in  a  safe  locality,  in  a  town,  village,  or  at  a  railroad  depot,  or  upon 
some  neighboring  plantation. 

3.  The  general  agents  shall  make  monthly  reports  at  the  end  of 
each  month,  to  the  Produce  Loan  Office,  setting  forth  the  number  of 
bales  of  cotton  collected  during  said  month,  together  with  their 
weights,  marks,  numbers  and  quality,  and  the  places  where  they  are 
stored. 

4.  The  general  agents  shall  make  such  regulations  as  may  be 
necessary  and  proper  to  carry  out  the  foregoing,  subject  to  the 
approval  of  the  Secretary  of  the  Treasury. 

5.  The  general  agents,  in  addition  to  their  present  compensation, 
shall  be  allowed  —  per  cent,  on  the  value  of  the  cotton  collected,  the 
Baid  commissions  not  to  exceed  % —  per  annum  for  their  services, 


25 

under  these  regulations.  The  compensation  of  sub-agents  will  be 
fixed  hereafter,  according  to  the  amount  and  nature  of  the  services 
required  from  them. 

6.  All  expenses  incurred  in  the  execution  of  these  regulations, 
shall  be  paid  by  the  general  agents,  out  of  the  funds  to  be  transmit- 
ted to  them  from  this  department,  on  the  requisition  and  estimate,  for 
the  disbursement  of  which  they  shall  render  a  separate  account. 

C.  G.  MEMMINGER, 
Secretary  of  Treasury. 


LB.] 


Treasury  Department,  C.  S.  A.,  ) 
November  16,  1863.      \ 

liegulations  concerning  the  Tobacco  collected  as  *«  tax  in  kind,''''  under  the 
act  of  April  24,  1863. 

1 .  There  shall  be  appointed  a  general  agent  in  each  of  the  States 
of  Virginia  and  North  Carolina,  to  receive  and  preserve  the  tobacco 
collected  by  the  post  quartermasters,  under  the  provisions  of  section 
thirteen,  of  the  tax  act,  approved  April  24,  1863. 

2.  The  said  general  agents  shall  be  authorized  to  appoint  as  many 
sub-agents,  and  to  make  such  regulations,  subject  to  the  approval  of 
the  Secretary  of  the  Treasury,  as  may  be  necessary  to  enable  them 
to  perform  eificiently  the  duties  entrusted  to  them. 

3.  The  general  agents  shall  receive  from  the  quartermasters  the 
tobacco  collected  from  time  to  time,  and  give  receipts  in  duplicate  to 
them  for  the  same,  one  of  which  receipts  shall  be  transmitted  to  the 
Secretary  of  the  Treasury  by  the  said  quartermaster. 

4.  The  tobacco  collected  and  received  as  above,  shall  be  assorted, 
ordered,  prized,  and,  when  put  in  suitable  condition  for  market,  shall 
be  weighed,  marked,  and  stored  in  boxes  or  hogsheads,  in  some  safe 
and  convenient  warehouse  by  the  general  agent,  or  some  of  his  sub- 
agents. 

5.  The  general  agents  shall  make  monthly  reports  at  the  end  of 
each  montli  to  the  Produce  Loan  Office,  setting  forth  the  number  of 
hogsheads  or  boxes  of  tobacco  collected  during  said  month,  together 
with  their  weighty  marks,  numbers  and  quality,  and  the  places  where 
they  are  stored. 

6.  The  general  agents  shall  receive  for  their  services  under  these 
regulations,  a  compensation  of  —  per  cent,  on  the  market  value  of  all 
tobacco  made  ready  for  market,  said  compensation,  however,  not  to 
exceed  $4,000  in  any  one  year.  The  compensation  of  sub-agents 
will  be  fixed  hereafter,  according  to  the  amount  and  nature  of  the  ser- 
vices required  of  them. 

7.  All  expenses  incurred  in  the  execution  of  these  regulations, 
shall  be  paid  by  the  general  agents,  out  of  the  funds  which  will  be 


26 

transmitted  to  them  from  this  department,  on  estimate  and  requisition, 
for  the  disbursement  of  which  they  shall  render  a  quarterly  account, 
8.  The  General  Agents  shall  be  required  to  file  a  bond  with  the 
Comptroller  of  the  Treasury,  with  two  sureties,  in  the  sum  of  five 
thousand  dollars,  for  the  faithful  performance  of  their  duties,  said 
sureties  to  be  approved  by  the  Confederate  judge  of  the  district,  or 
by  any  judge  of  the  supreme  court  of  the  State,  in  which  such  Gene- 
ral Agent  shall  reside. 

a  G.  MEMINGER. 


ESTIiM^TES. 


HOUSE  OF  REPRESENTATIVES. 

Clerk's  Office,  ^ 

House  of  Eepristvtaiivcs,       > 

Richmond,  November  11,  1863.  ) 

Hon.  C,  G.  Memminger, 

Secretary  of  the  Treasury  : 
Sir:  I  have  the  honor  to  submit  the  following  estimates  fcfr  ap- 
propriations, which  will  be  necessary  for  the  House  of  Representatives, 
for  the  period  from  the  1st  of  January  to  the  3Uth  of  June,  1864: 

Compensation  and  mileage  of  members  and  delegates  of  the  House 
of  Representatives,  two  hundred  thousand  dollars,  ($200, 000). 

Compensation  of  officers,  clerks,  kc,  of  the  House  ot  Representa- 
tives, five  thousand  six  hundred  and  twenty-five  dollars,  ($5,625). 

Contingent  expenses  of  the  House  of  Representatives,  forty  thou- 
sand dollars,  ($-10,01)0). 

Contingencies  of  the  clerk's  office,  five  hundred  dollars,  ($500). 

Making  a  total  of  two  hundred  and  forty-six  thousand  one  hundred 
and  twenty-five  dollars. 

The  last  item  in  the  above  estimate  may  require  a  little  explana- 
tion. No  similar  item  has  ever  before  been  submitted  in  the  estimates 
from  this  office,  and,  consequently,  no  such  appropriation  has  been 
made.  The  contingent  fund  of  the  House  is  expended  under  the  di- 
rection of  the  Committee  on  Accounts.  No  bills  are  paid  by  the  clerk, 
out  of  that  appropriation,  until  they  are  approved  by  the  committee. 
The  functions  of  all  the  committees  cease  with  the  adjournment  of 
Congress,  and  hence  no  accounts  can  be  paid  from  the  fund  in  ques- 
tion during  the  Congressional  vacation.  In  consequence  of  this  ar- 
rangement, the  clerk's  office  has  been  subjected  to  some  inconvenience 
since  the  last  adjournment  jf  Congress.  An  appropriation  of  a  small 
sum,  for  "contingencies  of  the  clerk's  office,"  would  remedy  this  in- 
convenience. 

It  is,  therefore,  respectfully  recommended  that  this  item  be  em- 
braced in  the  estimates  from  your  department. 
Very  respectfully, 

A.  R.  LAMAR, 
Clerk  a7id  Disbursing  Officer ^ 

Per  De  Louis  Dalton,  Assistant. 


28 


SENATE. 

Office  Sergeant  at  Arms, 
Richmond,  Nov.  12,  1863. 

Sir  :  I  respectfully  submit  the  following  as  showing  the  amount  re- 
quired for  the  expenses  of  the  Senate  of  the  Confederate  States,  for 
the  six  months  ending  June  3U,  1863,  to  wit : 

For  compensation  and  mileage  of  Senators,  $47,880  00 

For  compensation  and  mileage  of  officers  and  clerks  of  the 

Senate,  8,000  00 

For  incidental  and  contingent  expense  of  the  Senate,  '  7,000  00 


$62,880  00 


Very  respectfully, 

Your  obedient  servant, 

L.  H.  FITZ  HUGH, 
Sergeant  at  Arms  G.  S.  Senate. 
Hon.  C.  G.  Memminger, 

Secretary  of  the  Treasury. 


EXECUTIVE  DEPARTMENT. 

Confederate  States  of  America,  ^ 

Executive  Department,      v 

Richmond,  Va.,  Nov.  5,  1863.  ) 

To  me  Hon.  Secrerary  of  the  Treasury  : 

Sir  :  In  reply  to  your  communication  of  the  28th  ult.,  I  have  the 
honor  to  submit  the  following  estimate  of  the  sum  to  be  appropriated 
by  Congress,  at  the  next  session,  for  the  "  telegraphic  and  contingent 
expenses  of  the  Executive  Department,"  i.  e,: 

Thirty-five  thousand  dollars. 

Of  this  amount,  probably  twenty  thousand  dollars  will  be  required 
to  pay  for  advertising  the  President's  proclamations,  already  issued,  and 
for  which  ail  the  bills  have  not  yet  been  s^nt  in.  I  have  never  before 
estimated  for  this  expense,  as  it  has,  until  recently,  been  borne  by  the 
State  Department. 

Very  respectfully, 

Your  obedient  servant, 
(Signed,)  BURTON  N.  HARRISON, 

Disbursing  Agent. 


29 


TREASURY  DEPARTMENT. 

ESTIMATE  OF  APPROPRI ATION  required  for  compensation  of  the 
Secretary  of  the  Treasury,  Assistant  Secretaty,  Comptroller,  Auditors, 

Treasurer  and  Register,  and  Clerks  and  Messengers  in  the   Treasury 
Department  for  six  months,  ending  June  30,  1864. 

For  compensation  of  the  Secretary  of  the  Treasury,  $3,000  00 

For  Assistant  Secretary  of  the  Treasury,  1,500  00 

One  chief  clerk,  at  $1,750  per  annum,  875  00 

One  disbursing  clerk,  at  $2iHi  per  annum,             *  100  00 

Six  clerks,  at  $1,500  per  annum,       •  4,500  00 

One  messenger,  at  $750  per  annum,  375  00 

One  superintendent,  at  $975  per  annum,  487  50 
One  chief  clerk,  treasury  note  division,  at  $2,500  per 

annum,  1,250  00 

Four  clerks,  at  $1,500  per  annum,  3,000  00 
One  chief  clerk,  Produce  Loan  Office,  at  $2,500  per 

annum,  *   1,250  00 

Six  clerks,  at  $1,500  per  annum,  4,500  00 

Commissioner  of  Taxes,  at  $3,000  per  annum,  1,500  00 

One  disbursing  clerk  of  war  tax,  at  $1,750  per  annum,  875  00 

Twenty  clerk,  at  $1,500  per  annum,  15,000  00 

Comptroller,  at  $3,000  per  annum,  1,500  00 

One  chief  clerk,  at  $1,750  per  annum,  875  00 

Twenty-four  clerks,  at  $1,500  per  annum,                .  18,000  00 

One  messenger,  et  $750  per  annum,  375  00 

First  Auditor,  at  $3,000  per  annum,  1,500  00 

One  chief  clerk,  at  $1,750  per  annum,  875  00 

Sixty-four  clerks,  at  $1,500  per  annum,  48,0' '0  00 

One  messenger,  at  $750  per  annum,                        •  375  00 

One  assistant  messenger,  at  $375  per  annum,  187  50 

Second  Auditor,  at  $3,000  per  annum,  1,500  00 

Two  chief  clerks,  at  $1,750  per  annum,  1,750  00 

One  hundred  and  twenty  clerks,  at  $1,500  per  annum,  90,000  00 

One  messenger,  at  $750  per  annum,  375  00 

Treasurer,  at  $3,000  per  annum,  1,500  00 

One  chief  clerk,  (treasurer,)  at  $1,750  per  annum,  875  00 

Ninety-six  clerks,  (treasurer,)  at  $l,5liO  per  annum,  72,000  00 

Seventy-two  female  clerks,  at  $900  per  aiinum,  32,400  00 

One  messenger,  at  $750  per  annum,  375  00 

One  assistant  messenger,  at  $45"i  per  annum,          •  225  00 

Register,  at  $3,000  per  annum,  1,500  00 

One  chief  cleik,  at  $1,750  per  annum,  875  00 

Forty  clerk;s  at  $1,500  per  annum,  30,000  00 

Sixty  eight  female  clerks,  at  $900  per  annum,  30, GOO  00 

One  messenger,  at  $750  per  annum,  375  00 

Carried  forward,  $374,250  OO 


30 

Brought  forward,  $374,250  00 

Two  clerks,  Light  House  Bureau,  at  $1,500  per  annum,  1,500  00 

O'ne  chief  clerk,  treasury  note  division  at  Columbia,  S. 

C,  at  S2,500  per  annum,  1,250  00 

Five  clerks,  at  $1,500  per  annum,  3,750  00 

Twenty-one  female  clerks,  at  $900  per  annum,  9,450  00 

$390,200  00 


Three  hundred  and  ninety  thousand  two  hundred  dollars. 
Respectfully  submitted  to  the  Secretary  of  the  Treasury. 


ESTIMATE  OF  APPROPRFATION  required  for  incidental  and 
contingent  ixpen^es  of  the  Treasury  Befartment ,  for  the  six  months 
ending  June  30,  1864. 

Fuel  and  gas,  $1,500  per  month,  for  January,  February, 

March  and  April,  $6,000  GO 
Postage  on  soldiers'  claims  and  other  matters,  3,000  00 
Telegrams,  $300  per  month,  1,^00  00. 
Servant  hire,  $1,000  per  month,  G,000  00 
Washing,  $100  per  month,  600  00 
Stationery,  including  ledgers,  paper,  blanks,  pens,  en- 
velopes, ink,  &c.,                                                          .  20,000  00 

$37,400  00 


Thirty-seven  thousand  four  hundred  dollars. 

Respectfully  submitted  to  the  Secretary  of  the  Treasury. 

JOHN  M.  STRi'THER, 
Disbursing  Clerk,  Treasury  Department. 
November  7,  1863. 


ESTIMATES   OF  APPROPRIATIONS,    under  the  control  of  the 
Treasury  Department,  required  from  January  1st,  to  June  3\)th,  1864. 

For  the  payment  of  interest  on  the  public  debt,  $20,000,000  00 

For  engraving  and  printing  treasury  notes,  bonds 

and  certificates  for  stock,  and  for  paper  for  the 

same,  800,000  00 


Carried  forward,  $20,800,000  00 


31 

Brought  forward,  $20,800,000  00 

For  compensation  Secretary  of  Treasury,  assistant 

secretary,  comptroller,  auditors  treasurer,  and 

register,  and   clerks,    and   messengers   in   the 

Treasury  Department,  390,200  00 

For  incidental    and   contingent    expenses    of  the 

Treasury  Department,  37,400  00 

For  rent  of  executive  buildings  and  President's 

house,  15,000  00 

To  defray  expenses  incurred  in  the  safe-keeping 

and  transportation    of  coin  belonging  to  New 

Orleans  banks,  559  00 

For  the  payment  of  principal,  under  loan  of  Au- 
gust 19th,    1861,   this  sum  being  amount  due 

and  payable  on  the  Ist  of  July,  18G4,  1,340,200  00 


$22,583,359  00 

C.  G.  MEMMINGER, 

Secretary  of  Trcasvry. 


DEPARTMENT  OF  STATE. 

APPROPRIATIONS  required  by  the  Department  of  State,  for  the  six 
months,  ending  ^[)th  June,  1864, 

For  Foreign  Intercourse. 

Salaries  of  four  Commissioners,  $24,000  00 

And  three  Secretaries,  5,400  00     29,400  00 

(As  per  secret  acts  of  Prov,  Congress  of  13th 
and  27th  Feb.,  1861,  (Nos.  7  and  39,)  and 
act  No.  226,  of  Aug.  20,  1861.) 

Salaries  of  commercial  agents  and  consuls, 

(per  act  No.  74  of  March  15,  1861,)  5,000  00 

For  secret  service,  i.  e.,  necessities  and 
exigencies,  under  laws  already  passed,  or 
which  may  be  passed,  or  from  causes  which 
now  exist,  or  may  hereafter  arise,  and  un- 
foreseen emergencies,  to  be  expended  un- 
der direction  of  the  President,  500,000  00 

For  purchase  of  books,  3,000  00 

For  salary  of  Secretary  of  State,  ( per  acts 

Nos.  23  and  24  of  Feb.  2  Ist,  1861,  3,000  00 


Carried  forward,  $537,400  00 


32 

Brought  forward,  $537,400  00 

For  salary  of  chief  clerk,  (per  acts  No,  53,  of 
March  7th,  1861,  and  ch.  47,  of  Oct.  13, 
1862,  875  00 

For  salary  of  one  clerk  (same  references,)  750  00 

And  compensation  as  Disbursing  officer, 
(per  acts  of  May  16,  1861,  (No.  13U,)  and 
of  April  29,  1863,  (ch.  49,)  100  00 

For  salary  of  two  clerks,  (per  act  of  March 
7,  1861,  (No.  53,)  and  of  Oct.  13,  1862, 
(ch.  47,)  1,500  00 

For  salary  of  one  messenger,  (same  re- 
ferences,) 575  00 

For  salary  of  one  laborer,  ( same  refer- 
ences and  ch.  49,  of  29th  April,  1863,  409  50 

$4,009  50 


$541,409  50 


Department  of  State, 

Richmond,  Nov.    7th,  1863. 


J.  P.  BENJAMIN, 

Secretary  of  State. 


DEPARTMENT  OF  JUSTICE. 

Department  of  Justice,        ) 
Richmond,  Nov.  5th,  1863.  J 

Hon.  C.  G.  Memminger,  Secretary  of  the  Treasury  : 

Sir  :  In  compliance  with  the  act  of  Congress,  approved,  9th  of 
April,  1862,  I  have  the  honor  to  submit  the  following  estimates  for' 
thia  Department,  from  the  1st  day  of  January,  1864,  to  the  30th  of 
June,  1864,  inclusive  : 

1.  For  salaries  of  Attorney  General,  Assistant  At- 
torney General,  clerks  and  messenger,  $4,334  89 

2.  For  contingent  expenses  of  department,  1,500  00 

3.  For  salaries  of  judges  and  attorneys,  24,200  00 

4.  For  contingent  expenses  of  courts,  40,429  23 

5.  For  salaries  of  commissioners  under  the  seques- 
tration act,  2,358   15 

6.  For  salary  of  clerk  of  said  commissioners,  875  00  • 

7.  For  salaries  of  Governor  and  Commissioner  of 
Indian  Affairs,  of  Secretary,  and  of  Judges,  At- 
torney and  Marshal  of  Arizona  Territory,  4,650  00 


Carried  forward,  $78,337  26 


83 

Brought  forward,  $78,337  26 

8.  For  contingent  expenses  of  said  territory,  to  be 

expended  by  the  Governor,  500  00 

9,  For  salaries  of  superintendent  of  public  printing, 

his  clerks  and  messenger,  3,750  70 

10.  For  printing,  ruling  and  binding  for  the  several 

expcutive  departments,  100,000  00 

1 1.  For  printing,  ruling  and  binding  for  both  houses 
of  Congress,  including  the  printing  of  the  laws  in 

the  authorized  form,  10,000  00 

12.  For  purchase  of  paper  for  the  several  executive 

department  and  Congress,  30,000  00 

$222,587  96 
Your  obedient  servant, 

WADE  KEYES, 

Attorr.ey  General ^  ad  interim. 


WAR  DEPARTMENT. 


Confederate  States  of  America.      V 

War  Department.  > 

Richmond,  Va.,  Nov.  6,  1863.    ) 

I  estimate  that  there  will  be  required  for  the  contingent  and 
incidental  expenses  of  the  army,  for  the  six  months  from  January  Ist 
to  June  30,  1864,  the  sum  of  two  hundred  and  fifty  thousand  dol- 
lars. 

JAMES  A.  SEDDON, 

Secretary  of  War, 


Note. — The  estimates  for  the  expenses  of  the  Bureau  of  Conscription  will  be  made  the 
matter  of  a  special  communication  hereafter,  as  the  len^^th  of  time  necessary  to  procure 
the  proper  data  precludes  its  enteriDg  into  the  general  estimates. 


34 


ESTIMATE  OF  FUNDS  required  for  the  fiscal  year   ending   June 
3UiA,  1864, /or  the  Adjutant  end  Inspector  Generals  OJicCy  C.  S.  A. 


Number. 


What  Purpose. 


Amount. 


Isi 

2.1 

3rd 

4'h 

6tli 

6th 

Irh 

8th 


Postag*'8 

Telegraphing 

Statiorieiy 

Fuiuituie 

Carpenter's  lle|  aiis.  «fec. 

Porter's  Hire , 

Labrirer'ts  Hire 

Kxpress  Freight 

Deduct  amount  on  hand 

Total 


$10,000  GO 

^  10.000 

00 

15.000 

00 

5.000 

00 

6.01)0 

00 

2.000 

00 

2,<>00 

00 

1,000 

00 

None. 

$50,000 

00 

Whole  amount  required  for  the  fiscal  year  ending  June  3  th,  1864, 
fifty  thousand  dollars,  ($5(),(MiO,)  for  the  contingent  expenses  of  the 
Adjutant  and  Inspector  General's  Office,  C.  SS.  A.,  at  Richmond, 
Va. 

I  certify  that  the  above  Estimate  is  correct,  and  that  the  amount 
above  mentioned  is  necessary  to  meet  the  expenses  of  this  office,  (as 
per  in  rease  since  January,  1863,)  for  the  fiscal  year  ending  June 
30th,  1864. 

S.  COOPER, 
Adj't.  and  Insf.  Gen.  C,  S.  A. 

Adj't.  AN'd  Insp.  Gen.  Office, 
Michmond,  Oct.  1863. 


Confederate  States  f'v  Amehica, 
War  Departments  Engineer  Bu 
Richmond,  Va.,  Nov.  4 


:a,  \ 

renu,      \ 
.  1864.  ) 


ESTIMATE  for  Engineer  Service,  Conf  derate  States^ 

For  the  six  months,  commencing  Ist  January,  1864,  and  ending 
SOth  June,  1864,  ten  million  dollars,  ($10,OUS),()OM  ) 

A    L.  RIVES, 
lieutenant  Colonel  and  Acting  Chief  Bureau. 


»5 

ESTIMATE  OF  FUNDS  required  by  the  Ordnance  Department,   C. 
S.  A.,  from  \st  January,  1864,  to  imh  June,  1864. 

Ordnance  service  in  all  its  branches,  twenty-three  million  dollars, 
viz: 

Service  of  arsenals  and  depots,  $5,000,000 

Purchase  and  manufacture  of  artillery  and  smrill  arms,  6,000,000 
Purchase  of  or<inance  stores,  including  powder,  mate- 

riiis  and  equipments  of  all  kinds,  6,00  ",000 
Making  cartridges,  harness,   equipments,   ammunition 

wagons,  &c.,  2,500,(100 

Purchase  of  ordnance  stores  abroad,  3.5(M),000 


$23,000,000 


J.  GORG\S, 
Coltntl,  Chief  of  Ordnance. 


Confederate  States  of  America,      ) 
War  Dt'partmenty  Nitre  and  Min  ng  Bureau.  ) 

ESTIMATE  OF  FUNDS  required  hy  the  Nitre  and  Mining  Bureau, 
during  the  months  of  January,  February,  March,  April,  May,  aud 
June,  1864. 

Nitre  and  mining   service,   nine   million   five   hundred   thousand 
dollars. 

Purchase  and  manufacture  of  Nitre,  $4,000,000 

Pun'hase  of  lead,  copper,  zinc,  &c.,  :2, 000, 000 

Purchase  of  pig  and  rolled  iron,  3.500,000 

$9,500,0.10 


It  is  desired  that  the'respective  amount**  req'iired  be  made  under 
one  appropriation;  and  it  id  suggested  that  it  be  for  nitre  and  mining 
lervice. 

II    F.  REARDON, 
Lieutenant  and  Disbursing  Officer. 
Approved,  upon  the  basis  of  present  price. 
J.  M.  St.  John,  Lieutenant  Colonel  and  Chief  Bunau. 


36 

Confederate  States  of  America,  \ 

Surgeon  GeneraVs  Office,      > 

Richmond,  Va.,  Oct.  29,  1863.  ) 

Hon.  James  A.  Seddon,  Secretary  of  War,  Richmond,  Va.  : 

Sir  :  I  have  the  honor  to  submit  the  following  estimate  for  funds 
required  for  the  Medical  Department  of  the  C.  S.  Array,  for  the  period 
of  six  months,  commencing  December  Slst,  1863,  and  ending  June 
30th,  1864: 

For  the  purchase  of  medical  and  hospital  supplies  from  December 
3lBt,  1863,  to  June  30th,  1864. 

Medicines,  $6,000,000 

Instruments,  100,000 

Books  for  hospital  and  reg't  records,  200,000 

Hospital  stores,  2,000,000 

Bedding,  1 ,000,000 

Furniture,  Dressing,  &c.,  2,000,000 


$11,300,000 


For  hospital  clothing,  required  by  act  of  Congress,  ap- 
proved September  27th,  1862,  entitled  an  act  to 
better  provide  for  the  sick  and  wounded  of  the  army 
in  hospitals,  1,000,000 

For  three  hundred  and  twelve  thousand  srallons  alco- 
holic stimulants  required  for  Medical  Department  for 
medical  and  hospital  purposes  for  an  army  of  five 
hundred  thousand  men,  3,120,000 

For  establishment  and  support  of  military  hospitals, 

from  December  3 let,  1863,  to  June  30th,  1864,  250,000 

For  pay  of  private  physicians,   employed  by   contract 

from  December  3 1st,  1863,  to  June  3(lth,  1864,  200,000 

For  pay  of  nurses  and  cooks  not  enlisted  or  volunteers, 

from  December  31st,  1863,  to  June  30th,  1864,  350,000 

For  pay  of   hospital    Stewarts,   from   December  31st, 

1863,  to  June  30,  1864,  100,000 

For  pay  of  matrons,  assistant  matrons,  and  ward  matrons, 

from  December  3 1st,  1863,  to  June  30th,  1864,  350,000 

For  pay  of  ward  masters,  from  December  31st,  1863,  to 

June  30th,  1864,  200,000 

For  pay  of  hospital  laundresses,  from  December  31st, 

1863,  to  June  30th,  1864,  150,000 


Total,  $17,020,000 

Very  respectfully, 

Your  obedient  servant, 

S.  P.  MOORE,    ' 
Surgeon  GenertU,  C.  S,  Army. 


COST  OF  PvATION  BY  ESTIMATED  COST  OP  ONE  HUNDRED  RATIONS. 


Rations. 

Article 

Quantity. 

Price. 

Amount. 

Remarks. 

80 

Bacon. 

40  lbs. 

$1  00 

$40  00 



20 

Beef. 

20     •' 

'40 

8  00 

80 

Flour. 

120     " 

13 

15   liO 

20 

Meal. 

SO     " 

9 

2  70 

10 

Beans. 

0  £:iii.s. 

4  00 

00 

90 

Rice. 

9  lbs. 

20 

1  SO 

100 

Vinegar. 

Iffal. 

50 

60 

J  00 

Candles. 

1^  lbs. 

1  00 

1   50 

100 

Soap. 

4     " 

1  00 

4  00 

100 

Salt. 

3  qts. 

2  50 

26 

74  45 

Cost 

of  Ration 

74  45 

ESTIMATE  OF  FUNDS  required  for  the.  Subsistence  o/ 400,000  men 
from  January  1,  18(>-J,^  June  3(1,  1864,  {one  hundred  and  eighty- 
two  days,)  making  72,800,000  rations: 

72.800,000  rations,  at  75  cents  per  ration, 
25,000,000  lbs.  sugar,  at  $1  per  lb., 
1,000,000  gallons  of  molasses,  at  $5.50  per  gallon, 
1,001), 000  gallons  of  whiskey,  at  $5  per  gallon, 
Purchase  of  weights,  scales  and  measures, 
Provisions  for    employees  in    Quartermaster's    Depart- 
ment, r.nd  laborers  under  charge  of  Engineer  and 
Nitre  Bureau, 


$54,600,000 

25,000,000 

5,500,000 

.5,000,000 

250,000 


Add  10  per  cent,  for  wastage, 


7,821,000 

$98,171,000 
9,817,100 


_,    .  -  $107,988,100 

JiiStimated  amount  unexpended  of  appropriations  for  cur- 

^«>^ty«^^  50,000,000 


Amount  needed. 


57,988,001 


QUARTEBM.\STER  GeNERAL's  OffICE, 

Richmond,  Oct.  26,  1863. 

Sir:    I  have   the    honor   to   submit  herewith  an   estimate  of  the 
amount  that  will  be  required  for  the  pay,  transportation,  and  other 


98 

allowances,  provided  through  the  Department,  for  the  army,  for  six 
months,  from  January  1st  to  June  30,  1864, viz: 

Field  and  Staff. 


Pay  for  200  generals,  for  six  months, 

Pay  for  400  aids  de  camps,  for  six  months, 

For.^ge  for  generals'  and  aids'  horses,  for  six  months, 

Tents  for  generals  and  staff, 

Wagons  and  harness,  (two  to  each,) 

Horses  and  mules,  (purchased  for  teams,) 

Hire  of  teamsters. 

Fuel  for  generals  and  staff, 

Forage  for  horses  and  mules,  (teams,) 

Horse  shoes,  nai-ls,  iron,  &c., 

Stationery, 

Pay  for  brigade  quartermasters, 

Pay  for  brigade  commissaries, 

Pay  for  chaplains, 

Pay  for  cadets, 

Straw  for  animals, 

Fuel  for  commissaries  and  quartermasters. 

Forage  for  horses  for  cadets. 


$361,200 

324,000 

367,920 

25,000 

120,000 

280,000 

96,000 

60,000 

288,000 

9,600 

3,600 

158,436 

154,548 

240,000 

39,420 

18,396 

43,470 

13,140 

$2,602,730 


One  Corps  of  Artillery,  as  Light  Artillery,  40  Companies. 


Pay  for  officers  and  men,  for  six  months,  $432,144 

Pay  for  mechanics,  laborers  and  teamsters,  for  six  months,  44, 1 60 

Pay  for  tents,  for  officers  and  men,  10,336 

Pay  for  forage  for  animals,                                       ■  813,600 

Pay  for  fuel  for  officers  and  men,  47, '20 

Pay  for  purchase  of  horses  and  mules,  7 1 1 ,200 

Pay  for  camp  and  garrison  equipage,  1,600 

Pay  for  travelling  forges,  complete,  16,000 

Pay  for  wagons  and  harness,  33,800 

Pay  for  stationery  for  officers,  2,400 

Pay  for  horse  shoes,  nails,  iron,  steel,  &c.,  24,000 

Pay  for  straw  for  bedding  for  men  and  animals,  40,680 

Pay  for  leather,  thread,  &c.,  repairing  harness,  9,000 

Pay  for  hire  of  wagon  and  forage  masters,  8,400 

Pay  for  clothing  for  non-commissioned  officers  and  men,  297,900 

Pay  for  purchase  of  horse  medicines,  3,000 

$2,495,440 


39 

One  Regiment  ofCaval<-y,  (733  strong,)  for  six  months. 

Pay  of  officers  and   men,  including  40  cents  risk  of  horses,  for  six 

months,  $141,048 

Pay  of  Mechanics  and  teamsters,  1 1  040 

Pay  of  wagon  and  forage  masters,  2,|iM) 

Pay  for  tents  for  officers  and  ra^'n,  2.272 

Pay  for  camp  and  garrison  equipage,  1,603 

Pay  for  travelling  forges,  complete,  4,000 

Pay  for  horses,  mules,  wagons  and  harness,  37,050 

Pay  for  stationery  for  officers,  2,400 

Pay  for  horse  shoes,  nails,  iron,  steel,  &c.,  4,800 

Pay  for  straw  for  bedding,  for  men  and  animals,  9,854 

Pay  for  leather,  thread,  &c.,  repairing  harness,  4,800 

Pay  for  forage  for  animals,  181,260 

Pay  for  fuel  for  officers  and  men,  9,970 

Pay  for  clothing  for  enlisted  men,  54,975 

Pay  for  horse  medicines,  1 ,200 


$468,369 


One  Regiment  of  Infantry,  (733  strong,)  for  six  mmths. 

Pay  of  officers  and  men,  for  six  months,  $  80,280 

Pay  of  mechanics  and  teamsters,  11,040 

Pay  of  wagon  and  forage  masters,  2,100 

Pay  for  tents  for  officers  and  men,  2, 1 60 

Pay  for  camp  and  garrison  equipage,  1,600 

Pay  for  mules,  wagons  and  harness,  37,050 

Pay  for  forage  for  animals,  32,220 

Pay  for  horse  shoes,  nails,  iron,  &c.,  4,800 

Pay  for  straw  for  bedding,  2,500 

Pay  for  stationery  for  officers,  2,400 

Pay  for  fuel  for  officers  and  men,  9,600 

Pay  for  clothing  for  enlisted  men,  53,475 


$239,225 


Signal  Corps,  for  six  months. 

Pay  of  one  major,  $    900 

Pay  of  ten  captains,  7800 

Pay  of  ten  1  St  lieutenants,                                              *  5,400 

Pay  of  ten  2d  lieutenants,  4,800 

Pay  of  thirty  sergeants,  3,060 

Pay  of  sergeants,  extra  duty  pay,  2,160 

Amount  carried  forward,  $24,120 


40 

Amount  brought  forward,  $24,120 

Pay  for  clothing  for  enlisted  men,  2,250 

Pay  for  fuel  for  officers  and  men,  2,970 

Pay  for  tents  for  officers  and  men,  850 

Pay  for  stationery  for  use  of  corps  in  the  field,  1,500 

Pay  for  horses  for  sergeants,  (purchased,)  5,250 

Pay  for  forage  for  animals,  10,980 

$47,920 


Tax  Ad.  see  Sec.  13. 


Pay  of  eleven  majors,  for  12  months  from  1st  July,  1863,  to  1st  July, 

1864,  $     21,384 

Pay  of  seventy-four  captains,  for  12  months  from  1st  Jnly, 

1863,  to  1st  July,  1864,  .      124,330 

Pay  for  fuel  and  quarters  for  officers,  for  12  months  from 

1st  July,  1863,  to  Ist  July,  1864,  67,500 

Pay  of  1,440  agents,  at  $1,000  each,      .  1,440,000 

Pay  of  eighty-five  clerks,  at  $1,000  each,  85,000 

Pay  for  transportation  on  railroads,  &c.,  1,500,000 

Pay  for  purchase  of  wagons,  teams,  &c.,  2,160,000 

Pay  of  laborers,  one  for  each  depot,  691 ,200 

Pay  for  hire  of  teamsters,  518,400 

Pay  for  material  and  labor  for  building  store-houses,  720,000 

Pay  for  rent  of  offices,  &c.,  -  432,000 

Pay  for  grain  bags,  30,000  to  each  depot,  equal  to  2,160,000 

bags,  at  $1.50  each,  3,240,000 

Pay  for  incidental  expenses,  1,213,400 

$12,213,204 


Recapitulation. 


Field  and  stafi",  $2,602,730 

8  corps  of  artillery,  each  $2,495,440,  19,963,520 

175  regiments  of  cavalry,  each  $468,369,  81,9fi4,575 

.647  regiments  of  infantry,  each  $239,225,  130,856,075 

1  signal  corps,  47,920 

$235,434,820 

^OflScers,  &c.,  for  collection  of  tax  in  kind,  12,213,204 


Amount  carried  forward,  $247,648,024 


41 

Amount  brought  forward,  $247,648,024 

To  which  add  : 

For  the  transportation  of  troops  and  their  baggage,  of 
quartermasters's  subsistence,  ordnance  and  ordnance 
stores,  from  place  of  purchase  to  troops  in  the  field ; 
the  purchase  of  horses,  mules,  wagons  and  harness ; 
the  purchase  of  lumber,  nails,  iron  and  steel,  for  erect- 
ing store-houses,  quarters  for  troops,  and  other  re- 
pairs, hire  of  teamsters,  laborers,  &c.,  at  30  per  cent, 
on  $235,434,820  70,630,446 

To  pay  for  horses  of  volunteers  killed  in  battle,  under 
act  .No.  48,  section  7,  and  for  which  provision  is  to  be 
made,  100,000 

To  pay  for  property  pressed  into  the  service  of  the  Con- 
federate States,  under  appraisement,  and  said  property 
having  been  either  lost  or  applied  to  the  public  ser- 
vice, 200,000 

For  the  sustenance  of  prisoners  of  war,  under  act  No. 
181,  section  1,  and  the  hire  of  the  necessary  prisons, 
guard-houses,  &c.,  for  the  safe-keeping  of  the  same,  or 
80  much  thereof  as  may  be  necessary,  1,000,000 

For  the  pay  of  the  officers  on  duty  in  the  offices  of  the  Ad- 
jutant and  Inspector  General's  Department,  the  Quar- 
termaster General's,  Medical,  Engineer,  Ordnance, 
and  Subsistence  Departments,  in  Richmond,  450,275 


Total,  $320,028,745 

Respectfully  submitted, 

A.  R.  LAWTON, 
Quartermaster  General. 


Confederate  States  of  America,  V 

War  Department,  ^ 

Richmond,  Va.,  November  5th,  1863.  ) 

Hon.  James  A.  Seddon,  Secretary  of  War  : 

Sir  :  I  have  the  honor  to  submit  the  following  estimate  of  funds 
for  the  use  of  this  department,  and  its  several  bureaus,  for  the  period 
embraced  between  the  1st  January,  1864,  and  30th  June,  1861, 
inclusive  : 

For  compensation  of  Secretary  of  "War,  Assistant  Sec- 
retary, Chief  Bureau,  clerks,  messengers,  &c.,  &c.,     $150,000  00 
For  incidental  and  contingent  expenses,  90,000  00 

For  salary  of  Commissioner,  Chief  Clerk,  &c..  Bureau 

of  Indian  Affairs,  2,125  00 

Total,  .         $242,125  00 


48 

The  estimates  for  the  pay  of  Secretary  of  War,  &c.,  and  for  the 
contingent  expenses  of  the  department  are  only  approximate,  and  I 
have  swelled  the  amount  to  some  extent  beyond  what  has  formerly 
been  asked  for,  in  consequence  of  the  increase  of  price  of  all  articles 
required  for  use,  and  of  the  steady  increase  of  clerical  force  needed 
by  the  several  bureaus. 

Very  respectfully,  your  obedient  servant, 

ALFRED  CHAPMAN, 
Disbursing  Clerk  War  Department, 


Confederate  States  of  America,  \ 

War  Department,  > 

Richmond,  Va.,  186  .      ) 

Abstract  of  Estimates. 

Quartermaster  General,  $320,028,745 

Commissary  General,  57,988,000 

Surgeon  General,  ,         17,020,000 

Engineer  Bureau,                        ,  10,000,000 

Ordnance  Bureau,                                                 .  23,000,000 

Nitre  and  Mining  Bureau,  9,500,000 

Adjutant  General's  office,  50,000 

Bureau  of  War,  242,125 
Conscript  service, 

Contingent  fund,  250,000 


BANK   CONVENTION. 


At  a  convention  held  in  Augusta,  Ga.,  on  tho  16tli  and  iTtl;  cf 
November,  1863,  the  following  banks  of  the  Confederate  States  w:ro 
represented,  viz.  : 

Bank  of  the  State  of  Georgia,  Anthony  Porter,  J.  Davidson. 

Union  Bank  of  Augusta,  Ga.,  Edward  Thomas. 

City  Bank  of  Augusta,  Ga.,  Thomas  Barrett. 

Bank  of  Augusta,  Ga.,  John  Bones. 

Mechanics'  B  ink  of  Augusta,  Thomas  Metcalf,  Josiah  Sibley. 

Augusta  Insurance  and  Banking  Company,  L.  A.  Dugag. 

Georgia  Railroad  and  Banking  Company,  Augusta,  John  P.  King. 

Central  Railroad  and  Banking  Company,  Savannah,  R.  R.  Cuyler. 

Planters'  Bank  of  State  of  Georgia,  Savannah,  R.  R.  Cuyler. 

Bank  of  Commerce,  Savannah,  G.  B   liamar. 

B;mk  of  Savannah,  Savannah,  W.  C    0.  DriscoU. 

Merchants'  and  Planters'  Bank,  Savannah,  Hiram  Roberts. 

Manufacturers'  Bank,  Macon,  B.  B.  Lewis. 

Bank  of  Columbus,  Columbus,  Daniel  Griffin, 

Bank  of  Fulton,  Atlanta,  S   Root. 

Atlantic  Insurance  and  Banking  Company,  Atlanta,  S.  Root. 

Commercial  Bank  of  Wilmington,  N.  C,  0.  S.  Parsley. 

Bank  of  Cape  Fear,  Wilmington,  W.  A.  Wright. 

Bank  of  Tennessee,  G.  C.  Torbett,  J.  A.  Fisher. 

Northern  Bank  of  Tennessee,  D.  N.  Kennedy. 

Branch  Bank  of  Tennessee,  Knoxville,  J.  G.  M.  Ramsey. 

Bank  of  Chattanooga,  Chattanooga,  Wm,  Williams. 

Bauk  of  Memphis,  Memphis,  W.  C.  McClure. 

Branch  Planters'  Bank  of  Memphis,  D.  A.  Shephard. 

Bank  of  Scottsville,  Va.,  J.  W.  Mason. 

Bank  of  Chaileston,  Charleston,  S.  C,  J.  K.  Saas,  G.  A.  Trcn- 
holm,  C.  T.  Lowndes,  Henry  Gourdin. 

Bank  of  the  State  of  South  Carolina,  C.  M.  Freeman. 

Bank  of  South  Carolina,  Charleston,  G.  B.  Reid. 

Planters'  and  Mechanics'  Bank,  Charleston,  G.  W.  Williams,  A,  S. 
Johnston,  J.  J.  McCirter. 

Union  Bank  of  South  Carolina,  W.  B    Smith. 

Stats  Bank  of  South  Carolina,  Edward  Sebring. 

Farmers'  and  Exchange  Bank  of  South  Carolina,  Wm.  Whaley. 

Southwestern  Railroad  Bank,  Charleston,  James  Rose,  J.  G. 
Holmes. 


44 

Exchange  Bank  of  Columbia,  S.  C,  R.  M.  Johnson,  W.  Johnson. 
Bank  of  Chester,  S.  C,  G.  S.  Cameron. 

Bank  of  Hamburg,  S.  C,  J.  W.  Stokes,  William  Gregg,  A.  C. 
DeCotts. 

There  were  also  present : 

Gen.  L.  M.  Ajer,  member  of  Congress  from  South  Carolina. 

Hon.  Benjamin  Hill,  member  of  Congress  from  Georgia. 

Hon.  Philip  M.  Clayton,  of  Georgia. 

Hon.  M.  C.  Mordecai,  of  South  Carolina. 

Col.  Ryan,  of  South  Carolina. 

R.  H.  Maury,  Esq.,  of  Richmond. 

Mr.  Baylor,  Georgia. 

Anthony  Porter,  of  the  Bank  of  the  State  of  Georgia  was  called 
to  the  chair,  and  W.  B.  Smith,  of  the  Union  Bank  of  South  Carolina, 
requested  to  act  as  secretary. 

The  following  report  and  resolutions  were  adopted  by  the  conven- 
tion, ordered  to  be  printed  and  a  copy  sent  to  the  Secretary  of  the 
Treasury  of  the  Confederate  States,  at  Richmond  : 

Whereas,  experience  has  demonstrated  that  the  dues  to  be  col- 
lected by  the  Government,  and  for  which  Treasury  notes  are  made 
receivable,-  are  inadequate  to  absovb  a  sufficient  amount  of  the  notes 
to  prevent  the  evils  of  an  excessive  paper  currency,  and  it  is  deemed 
essential  to  the  interests  of  the  people  and  the  Government  that 
measures  be  adopted  by  the  Government  to  reduce  or  fund  the  entire 
amount  of  the  said  issues,  or  so  much  thereof  as  shall  reduce  the  sum 
of  the  currency  to  two  hundred  millions  ($200,000,00(1)  of  dollars, 
or  less.  For  the  accomplishment  of  this  object  the  following  mea- 
sures are  recommended  to  the  country  and  the  Government  by  this 
convention  : 

1st.  That  a  new  issue  of  coupon  bonds  be  made  to. the  amount  of 
one  thousand  millions  of  dollars  ($1,000,000,000.)  The  bonds  bear- 
ing six  per  cent,  interest,  the  coupons  payable  annually,  in  coin,  and 
that,  in  future,  to  meet  the  wants  of  the  Confederate  Government, 
the  policy  of  issuing  treasury  notes  be  abandoned,  as  far  as  possible, 
and  a  tax  sufficient  for  all  requirements  be  adopted  as  the  true  policy 
to  sustain  the  credit  of  the  Confederacy. 

2d.  That  an  act  be  passed  levying  a  tax  of  sixy  millions  of  dollars, 
($60,000,000,)  to  be  collected  annually,  during  the  whole  period  of 
said  loan,  for  the  payment  of  the  interest  on  the  above  bonds,  and 
that  the  good  faith  of  the  Government  be  pledged  for  the  continuance 
of  such  tax  until  the  maturity  of  said  loan.  And  that  the  said  tax 
ehall  be  paid  in  coin,  and  that  the  coupons-  of  the  above  bonds  be 
received  in  payment  of  the  tax  in  lieu  of  coin. 

3d.  That  before  the  said  bonds  shall  be  oflfered  for  sale  in  any  other., 
manner,  or  at  a  price  above  par,  they  shall  first  be  apportioned  among 
the  States  of  the  Confederacy,  and  that  a  commissioner  shall  be 
appointed  for  each  State,  to  make  known  to  the  tax  payers  in  each 
collection  district,  the  necessity  of  providing  themselves  with  a 
Bufficient  amount  of  bonds  to  pay  this  specific  tax,  and  who  shall  sell. 


45 

at  par,  to  the  tax  payers  in  each  district,  the  amount  of  bonds 
required  to  provide  coupons  for  the  payment  of  th  ir  taxes  ;  and,  that 
all  bonds  heretofore  issued  by  the  Government  and  treasury  notes,  of 
all  issues,  be  received  in  payment  for  the  said  bonds,  and  that  the 
said  payment  shall  be  required  in  convenient  instalments  to  suit  the 
circumstances  of  persons  of  mod-Tate  means,  but  the  privilege  of  pay- 
ing in  full,  at  any  time,  shall  be  accorded  to  all. 

4th.  That  all  existing  distinctions  between  treasury  notes  of  dif- 
ferent issues  and  dates  be  abolished. 

5th.  That  the  interest  on  the  stock  of  the  fifteen  million  lonn  be 
paid  by  checks  on  the  treasury,  and  tha:  the  sai<i  checks  be  received 
in  payment  of  the  export  duty  on  cotton,  in  the  same  manner  as  the 
coupons  on  the  bonds  of  the  same  loan. 

6th.  That  a  five  per  cent,  call  loan  be  established  similar  to  the 
first  or  original  call  loan,  and  that  all  trea>sury  notes  be  received  at 
the  treasury  therefor,  and  that  the  present  five  per  cent,  and  four  per 
cent,  call  loans  be  abolished. 

7th.  That  the  right  of  the  holders  of  treasury  notes,  which,  upon 
their  face  are  fundable  in  eight  per  cent,  stock,  ought  to  be  recognized, 
and  an  eight  per  cent,  stock,  at  a  short  period,  be  provided  for  that 
purp^)He,  and,  also,  that  all  the  privileges  attached  to  the  original  six 
per  cent,  call  loan  be  restored  to  the  holders  (f  all  outstanding  certifi- 
cates "t  that  loan. 

8th.  That  an  increased  duty  be  levied  on  nil  imports  and  exports, 
during  the  continuance  of  th^  war,  and  that  'he  same  be  collected  in 
coin,  or  approved  bills  on  England  or  France,  or  in  the  interest  on 
the  fifteen  million  loan. 

9th.  That  an  issue  department  be  created  by  the  Government,  and 
kept  separate  fiom  the  Treasury  Department,  whose  duty  it  shall  be 
to  supply  a  new  issue  of  treasury  notes  in  exchange  for  the  amount 
that  may  remain  in  circulation  of  the  present  issues,  and  th!)t  the 
new  issues  shall  express  on  the  face  of  the  bills  that  the  same  are 
receivable  in  payment  of  all  public  dues  except  such  as  are  specifically 
required  to  be  paid  in  coin. 

loth.  That  there  shall  be  an  issue  of  bills  of  a  large  denomination, 
Tiz:  !$5(l(),  $L(M)l),  $5,(llt(l  and  $IO,l)()()  suflScient  to  facilitate  the 
transmi-ision  of  funds  and  the  settlement  of  balances. 

(Signed,)  A.  PORTER, 

Chairman. 

W.  B   Smith,  Secretary. 

The  following  resolution  was  also  adopted  : 

Rfsnlved,  That  tie  proceedings  of  this  convention  be  published  in 
the  city  papers,  and  a  copy  of  the  same  transmitted  by  the  pret-iding 
oflicer  of  this  contention  to  the  Secretary  of  the  Trewaury,  with  a 
request  that  he  will  commuDicate  the  same  to  Congress  at  its  next 
meeting 

(Signed,)      .  A.  PORTER. 

Chairman, 


